Suppose Total Output (Real GDP) Is $4,000 and Labor Productivity

question 272

Multiple Choice

Suppose total output (real GDP) is $4,000 and labor productivity is $8. We can conclude that

• A) real GDP per capita must be $500.
• B) the price-level index must be greater than 100.
• C) nominal GDP must be $500.
• D) the number of worker-hours must be 500.

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Definitions:

Inventory

A company's merchandise, raw materials, and finished and unfinished products which have not yet been sold.

Perpetual Inventory Method

An inventory management system where updates are made continuously to record sales and purchases instantly, maintaining constant and accurate inventory records.

Consolidation Worksheet

A tool used in accounting to combine the financial statements of parent and subsidiary companies into a single document for analysis.

Inventory Transfer

The movement of goods from one location to another, typically between departments or segments within a company.