Table 23-1 A Country Produces Only Ice Cream and Pie.Quantities and Prices

question 336

Multiple Choice

Table 23-1
A country produces only ice cream and pie.Quantities and prices of these goods for the last several years are shown below.The base year is 2008.
Prices and Quantities

-Refer to Table 23-1.In 2009,this country's

• A) real GDP was $250,and the GDP deflator was 125
• B) real GDP was $250,and the GDP deflator was 120.
• C) real GDP was $240,and the GDP deflator was 125.
• D) real GDP was $240,and the GDP deflator was 120.

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Definitions:

Order Costs

Expenses associated with making and processing an order for goods or services.

Economic Order Quantity

The optimal quantity of stock that minimizes the total costs associated with ordering and holding inventory.

Carrying Costs

Carrying costs are expenses associated with holding inventory, including storage, insurance, and opportunity costs, among others.