Suppose the GDP Implicit Price Deflator Was 112

question 74

Multiple Choice

Suppose the GDP implicit price deflator was 112.7 in 2005 and 116.0 in 2006. Therefore, the inflation rate in 2006 would be

• A)2.8%.
• B)2.9%.
• C)3.3%.
• D)16%.

---

Definitions:

Division Profits

The earnings attributive to a specific division or branch of a larger company, often used to assess the performance of that segment.

Profit Centers

Profit centers are segments, branches, or divisions of a company that are treated as a separate business, responsible for generating their own revenues and profits.

Corporate Headquarters

The main office or center of operations for a business where significant managerial and administrative work is conducted.

Company-wide Profits

The total earnings of a company after all expenses have been subtracted from revenues, reflecting the overall financial success across all departments.