Table 72 GDP for Newland Based on Table 7

question 127

Multiple Choice

Table 7.2 GDP for Newland
$$\begin{array} { | l | r | c | r | } \hline & \begin{array} { c } \text { Nominal GDP(in billions of } \\\text { dollars) }\end{array} & \text { GDP deflator } & \multicolumn{2}{|c|} { \text { CPI } } \\\hline 2001 & \$ 5,900 & 120.1 & 128.3 \\\hline 2002 & 6,300 & 123.0 & 131.7 \\\hline 2003 & 6,800 & 126.3 & 136.5 \\\hline\end{array}$$ Based on Table 7.2,the real GDP for 2002 was

• A)$7,749.0 billion.
• B)$4,783.6 billion.
• C)$5,122.0 billion.
• D)$8,297.1 billion.

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Definitions:

Fiscal Year

A 12-month period used for accounting purposes and preparing financial statements.

Depreciation Expense

The allocation of the cost of tangible assets over their useful lives, reflecting the reduction in value over time.

Comparative Balance Sheet

A financial statement that presents the financial position of a company at different points in time side-by-side for comparison purposes.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the consumption of the asset.