Table 10-7
the Table Below Contains Data for the Country

question 26

Multiple Choice

Table 10-7
The table below contains data for the country of Togogo. The base year is 1974. $$\begin{array} { c c c } \text { Year } & \begin{array} { c } \text { Nomintal } \\\text { GDP }\end{array} & \begin{array} { c } \text { CDP } \\\text { Deflatar }\end{array} \\\hline 1974 & \mathbf { \$ 20 0 0 } & 100 \\1975 & \$ 3000 & 120 \\1976 & \mathbf { \$37 5 0 } & 150 \\1977 & \mathbf { \$ 6 0 0 0 } & 200\end{array}$$
-Refer to Table 10-7. From 1976 to 1977,

• A)inflation was 33.3% and output grew at a rate of 20%.
• B)inflation was 33.3% and output grew at a rate of 60%.
• C)inflation was 50% and output grew at a rate of 20%.
• D)inflation was 50% and output grew at a rate of 60%.

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The tax savings achieved by a company from the allowance for depreciation expenses, reducing taxable income.

Depreciable Basis

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The reduction in income taxes that results from taking a permissible deduction from taxable income.