If Nominal GDP Is Constant,then the GDP Deflator Varies Inversely

question 44

Multiple Choice

If nominal GDP is constant,then the GDP deflator varies inversely with

• A)The unemployment rate.
• B)Real GDP.
• C)COLAs.
• D)The CPI.

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Definitions:

Cash Discount

A reduction in the invoice price granted by the seller to the buyer for paying within a prescribed time period.

Transportation Costs

Expenses incurred in moving goods from one location to another, such as freight and shipping fees.

Merchandise

Goods or products that are bought, sold, or traded in the retail environment.

Merchandise Inventory

Goods available for sale to customers, held by a business; categorized as a current asset on the balance sheet.