The GDP Deflator or Price Index Equals

question 6

Multiple Choice

The GDP deflator or price index equals

• A)gross private domestic investment less the consumption of fixed capital.
• B)gross national product less net foreign factor income earned in the United States.
• C)nominal GDP divided by real GDP.
• D)real GDP divided by nominal GDP.

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Definitions:

Basing-Point Pricing

Selecting one or more geographical locations (basing point) from which the list price for products plus freight expenses are charged to the buyer.

Uniform Delivered Pricing

A pricing strategy where a company charges the same shipping price to all customers, regardless of their geographic location.

Transportation Costs

Expenses associated with the movement of goods or materials from one location to another, which can include freight charges, warehousing, and handling fees.

Fixed Allowance

A predetermined amount of money provided regularly, often for specific purposes like travel expenses, without the need to account for actual expenses.