The GDP Deflator Can Be Used to Take Inflation Out

question 91

True/False

The GDP deflator can be used to take inflation out of nominal GDP.

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Definitions:

Average Fixed Costs

The cost incurred by a company that does not change with the level of goods or services produced, averaged over a period.

Units

refers to a single, quantified piece of something that is used for measurement or as a standard for exchange.

Average Variable Costs

The total variable costs (e.g., labor, materials) divided by the quantity of output produced, showing the variable cost per unit of output.

Workers

Individuals engaged in physical or mental labor to produce goods or provide services in exchange for wages.