If Real GDP in 2016 Using 2015 Prices Is Higher

question 240

Multiple Choice

If real GDP in 2016 using 2015 prices is higher than nominal GDP of 2016, then

• A) prices in 2016 are lower than prices in the base year.
• B) nominal GDP in 2016 equals nominal GDP in 2015.
• C) prices in 2016 are higher than prices in the base year.
• D) real GDP in 2016 is larger than real GDP in 2015.

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Definitions:

Goodwill

An intangible asset representing the value of a company's brand, customer relationships, employee relations, and other non-physical assets.

Intangible Asset

An asset that lacks physical substance but is still valuable because of its potential economic benefits, such as patents or trademarks.

Amortized

The process of spreading out a loan or intangible asset cost over a fixed period in regular installments, covering interest and principal payments.

Salvage Value

The anticipated market value of an asset at the conclusion of its operational lifespan.