If in Some Year Real GDP Was $5 Trillion and the GDP

question 33

Multiple Choice

If in some year real GDP was $5 trillion and the GDP deflator was 200,what was nominal GDP?

• A)$2.5 trillion.
• B)$10 trillion.
• C)$40 trillion.
• D)$100 trillion.

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Definitions:

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, maintenance of factory equipment, and salaries of factory supervisors.

Job Cost

The total cost of materials, labor, and overhead allocated to a specific job or project.

Unit Product Cost

The cost assigned to a single unit of product, combining direct materials, direct labor, and manufacturing overhead expenses.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead costs to individual products based on a common activity base.