If Real GDP Increases We Know for Sure That

question 73

Multiple Choice

If real GDP increases we know for sure that

• A)output has risen.
• B)prices have risen.
• C)prices have risen but output has remained constant.
• D)prices have remained constant.

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Definitions:

Operating Cycle

The amount of time it takes for a company to purchase inventory, sell it, and convert the sale back into cash.

Average Payment Period

The average time it takes a company to pay off its accounts payable.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a specific period, indicating the efficiency of inventory management.

Average Sales Period

The average amount of time it takes for a company to sell its inventory, which can reflect its inventory management efficiency.