The GDP Deflator or Price Index Equals

question 6

Multiple Choice

The GDP deflator or price index equals

• A)gross private domestic investment less the consumption of fixed capital.
• B)gross national product less net foreign factor income earned in the United States.
• C)nominal GDP divided by real GDP.
• D)real GDP divided by nominal GDP.

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Definitions:

Released

Term indicating that a product, information, or service has been made available to the public or a specific audience.

Absorption Costing

A costing method that includes all manufacturing costs, both variable and fixed, in the cost of a product.

Gross Margin

The difference between sales revenue and cost of goods sold, representing the fundamental profit derived from trading activities, before deduction of operating expenses.

Operations

Activities involved in the day-to-day running of a business for the purpose of producing value for the stakeholders.