The GDP Deflator Provides a Measure of Which of the Following

question 11

Multiple Choice

The GDP deflator provides a measure of which of the following?

• A) Real GDP divided by the aggregate price level.
• B) The ratio of nominal GDP to real GDP.
• C) The ratio of GDP to the size of the population.
• D) The ratio of GDP to the number of workers employed.
• E) The price of a typical consumer's basket of goods.

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Definitions:

Expense Account

A ledger account that represents all costs or expenses incurred by a company during a specific period, impacting the income statement's net income.

Acquisition Costs

Expenses associated with acquiring new assets or investments, including legal fees, consulting fees, administrative costs, and other related expenses.

Property, Plant, Equipment

Long-term tangible assets owned by a business for use in the production or supply of goods and services, also known as fixed assets.

Speculation

The act of trading in an asset or engaging in a financial transaction that has a significant risk of losing most or all of the initial outlay, in expectation of a substantial gain.