Use the Following Information to Answer This Question

question 23

Multiple Choice

Use the following information to answer this question.If nominal GDP rises from $100 trillion to $120 trillion,while the GDP deflator rises from 2.0 to 2.2,the percentage change in real GDP is approximately equal to

• A)-10%.
• B)10%.
• C)20%.
• D)9.1%.
• E) 0%.

---

Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the proportion of fixed costs in a company's cost structure.

Forecasting Risk

The risk associated with the potential for actual results or outcomes to differ significantly from forecasted or expected results.

Operating Leverage

The degree to which a company or project can increase operating income by increasing revenue, emphasizing the fixed versus variable costs structure.

Break-Even Point

The sales level at which a company neither makes a profit nor incurs a loss.