Which of the Following Statements Is True Concerning the GDP

question 85

Multiple Choice

Which of the following statements is true concerning the GDP deflator and the CPI as measures of inflation?

• A)Only the CPI shows the rise in inflation in the 1960s and the 1970s.
• B)Inflation, as measured by the GDP deflator, is more volatile than inflation as measured by the CPI.
• C)Only the GDP deflator shows the rise in inflation the 1960s and the 1970s.
• D)The CPI and the GDP deflator show similar movements in general inflation.
• E)Only the GDP deflator shows the decline in inflation in the 1980s and the early 1990s.

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Definitions:

Inventory Turns

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

Dollar Amount

The numerical monetary value or total assigned to a transaction, account, or asset.

Inventory Turnover Ratio

A measure of how efficiently a company turns its inventory into sales by comparing cost of goods sold to average inventory for a period.

Inventories

Inventories are the goods and materials a business holds for the purpose of resale or production in the ordinary course of business.