Suppose Nominal GDP in 2009 Was $100 Billion and in 2010

question 44

Multiple Choice

Suppose nominal GDP in 2009 was $100 billion and in 2010 it was $260 billion.The general price index in 2009 was 100 and in 2010 it was 180.Between 2009 and 2010, the real GDP rose by approximately

• A)160 percent.
• B)44 percent.
• C)37 percent.
• D)80 percent.

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Definitions:

Purchases Discounts

An allowance given by the seller to the buyer for early payment or for buying in large quantities.

Net Purchases

The total cost of goods bought for resale, after subtracting returns, allowances, and discounts.

Merchandise Inventory

Goods that a company holds for the purpose of selling to customers.

Payroll Tax Expense

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.