Table 72 GDP for Newland Based on Table 7

question 112

Multiple Choice

Table 7.2 GDP for Newland
$$\begin{array} { | l | r | c | r | } \hline & \begin{array} { c } \text { Nominal GDP(in billions of } \\\text { dollars) }\end{array} & \text { GDP deflator } & { \text { CPI } } \\\hline 2001 & \$ 5,900 & 120.1 & 128.3 \\\hline 2002 & 6,300 & 123.0 & 131.7 \\\hline 2003 & 6,804 & 126.3 & 136.5 \\\hline\end{array}$$ Based on Table 7.2,the rate of inflation between 2002 and 2003,using the GDP deflator,was

• A)1.62 percent.
• B)2.68 percent.
• C)4.91 percent.
• D)None of the other choices.

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Definitions:

Bad Debt Expense

This represents the amount of receivables a company believes it can no longer collect, reflecting potential losses for accounts receivable or loans that are not expected to be fully paid.

Allowance

A reduction from the gross amount of an asset to recognize a reduction in its value.

Bad Debt Expense

An expense reported on the income statement, representing the estimated amount of receivables that a company does not expect to collect.

Receivable

Money owed to a company by its customers or other parties for goods or services that have been delivered or used but not yet paid for.