If the Nominal GDP Rises by 6 Percent and the Real

question 50

Multiple Choice

If the nominal GDP rises by 6 percent and the real GDP rises by 3 percent, then the price level ________ by ________ percent.

• A) rises; 3
• B) rises; 9
• C) falls; 3
• D) falls; 9
• E) There is no change in inflation.

---

Definitions:

Accounting Methods

The rules and guidelines used by businesses to keep financial records and prepare financial statements, including accrual and cash basis accounting.

Comparable Data

Data that is similar in nature and allows for comparison between different data sets or time periods.

Reporting Unusual Items

The practice of separately reporting significant financial transactions or events that are not typical of the business's regular operations, to provide clarity in financial statements.

Income Statement

A financial report that summarizes a company's revenues, expenses, and profits/losses over a specific period of time.