Assume the Table Shown Displays the Total Output and Prices

question 86

Multiple Choice

Assume the table shown displays the total output and prices of the only two goods produced in a small economy. What is the value of the GDP deflator in 2020 (rounded to the nearest whole number) ?

• A) 135
• B) 74
• C) 109
• D) 105

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Definitions:

Net Method

An accounting method that records purchases after deducting any available discounts, directly showing the net purchase cost.

Credit Terms

Conditions under which credit will be extended to a customer, including repayment timeframe and interest rate.

Merchandise Inventory

Goods a company has in stock and available for sale, typically in a retail or wholesale setting.

Inventory Shrinkage

The loss of products between purchase and sale, often due to theft, damage, or errors in counting.