If Real GDP Is Greater Than Nominal GDP Then the GDP

question 146

Multiple Choice

If real GDP is greater than nominal GDP then the GDP price index

• A)is greater than 100.
• B)is less than 100.
• C)is equal to 100.
• D)is either equal to or greater than 100.
• E)None of the above answers is correct because we need to choose a new base year.

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Definitions:

Miscellaneous Revenue

Income from sources other than the main business activities, such as rental income or interest income.

Cash Over And Short

An account that records the discrepancies between the actual cash received and the expected amount.

Credit Balance

An accounting term that signifies a positive balance in a liability, revenue, or equity account, which increases on the credit side and decreases on the debit side.

Petty Cash Fund

A nominal sum of cash reserved for quick payments of assorted trivial expenses.