If Real GDP in 2012 Using 2011 Prices Is Higher

question 63

Multiple Choice

If real GDP in 2012 using 2011 prices is higher than nominal GDP of 2012,then

• A)prices in 2012 are lower than prices in the base year.
• B)nominal GDP in 2012 equals nominal GDP in 2011.
• C)prices in 2012 are higher than prices in the base year.
• D)real GDP in 2012 is larger than real GDP in 2011.

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Definitions:

Income from Operations

Revenue from a company's everyday business activities minus the costs and expenses associated with those operations.

Operating Expenses

Costs associated with the day-to-day operations of a business, including rent, utilities, salaries, and office supplies, but excluding cost of goods sold and capital expenditures.

Cost of Goods Sold

the direct costs tied to the production of goods sold by a company, including both raw material costs and labor costs.

Net Sales

The total revenue a company earns after deducting returns, allowances for damaged or missing goods, and any discounts allowed.