If Real GDP Doubles and the GDP Deflator Doubles, Then

question 216

Multiple Choice

If real GDP doubles and the GDP deflator doubles, then nominal GDP

• A)remains constant.
• B)doubles.
• C)triples.
• D)quadruples.

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Definitions:

Materials

The physical substances or components used in the production of goods.

Factory Overhead

Costs associated with the manufacturing process that cannot be directly traced to a specific product, including utilities, depreciation, and maintenance of equipment.

Product Cost

The total cost associated with making or acquiring a product, including raw materials, labor, and overhead expenses.

Factory Overhead Cost

Expenses related to producing goods that are not directly traceable to products, including utilities and manager salaries at a production facility.