If Nominal GDP Is $8,820 Billion and the GDP-Deflator Is

question 7

Multiple Choice

If nominal GDP is $8,820 billion and the GDP-deflator is 105, then real GDP is

• A)$9,261 billion
• B)$8,925 billion
• C)$8,715 billion
• D)$8,400 billion
• E)$8,000 billion

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Definitions:

Gross Profit

The financial metric calculated by subtracting the cost of goods sold from net sales, representing the profit from selling goods before deducting operating expenses.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated using a specific inventory valuation method.

FOB Destination

A shipping term indicating that the seller retains ownership and responsibility over the goods until they are delivered to the buyer's location, at which point the buyer takes over.

Ending Inventory Balance

The value of all the unsold goods that a company has in its possession at the end of an accounting period.