Economists Measure the Price Level

question 59

Multiple Choice

Economists measure the price level

• A)by keeping track of nominal GDP.
• B)using a price index.
• C)by measuring the growth rate in money supply.
• D)by measuring the growth rate in real GDP.

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Definitions:

Sales Supplies Used

Pertains to the total cost of sales or promotional materials consumed or utilized during a particular period.

Selling and Administrative Expense

Selling and administrative expense includes costs related to the selling of products and the management of the business, excluding production costs.

Factory Overhead

Costs tied to manufacturing processes, excluding those for direct labor and materials.

Office Utilities

Expenses associated with the essential services used in an office, such as electricity, water, gas, and internet.