Which of the Following Is Correct

question 36

Multiple Choice

Which of the following is correct?

• A)Nominal GDP is always less than real GDP.
• B)Nominal GDP is always greater than real GDP.
• C)Nominal GDP equals real GDP in the base year.
• D)Nominal GDP equals real GDP in all years but the base year.

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Definitions:

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured, including costs related to maintenance, utilities, and equipment depreciation.

Raw Materials Inventory

This represents the stock of basic materials awaiting to be processed into finished goods.

Work in Process

Inventory that includes all the materials, labor, and overhead costs for products that are in the production process but not yet completed.

Finished Goods Inventory

Inventory of finished goods available for sale but still unsold.