Changes in the GDP Deflator Reflect

question 109

Multiple Choice

Changes in the GDP deflator reflect

• A)only changes in prices.
• B)only changes in the amounts being produced.
• C)both changes in prices and changes in the amounts being produced.
• D)neither changes in prices nor changes in the amounts being produced.

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Definitions:

Spontaneous Financing

Financing provided by current liabilities that arise automatically as a result of doing business.

Accounts Payable

Short-term liabilities a company owes to its creditors or suppliers, expected to be settled within one year.

Bank Loan

A sum of money borrowed from a bank that needs to be repaid with interest.

Accrual

An accounting method that records revenues and expenses when they are incurred, regardless of when cash transactions occur.