If There Is a Reduction in the Price of Large

question 49

Multiple Choice

If there is a reduction in the price of large road paving machines imported into Canada from Sweden, what will happen to the GDP deflator and the consumer price index?

• A) The GDP deflator and the consumer price index will decrease.
• B) The GDP deflator will not change; the consumer price index will decrease.
• C) The GDP deflator will decrease; the consumer price index will not change.
• D) Neither the GDP deflator nor the consumer price index will change.

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Definitions:

Cost Analysis

The process of reviewing and evaluating the costs involved in a project or operation.

Activity Rates

Charges or costs applied based on specific activities or drivers in cost accounting, used to allocate costs to products or services.

Wedding Cakes

A specialized product in the baking industry, often intricately designed and customized for individual wedding events.

Overall Margin

The ratio or percentage that represents the difference between a company’s sales and costs, indicating overall profitability.