Real GDP Is $140 Billion and Nominal GDP Is $180

question 15

Multiple Choice

Real GDP is $140 billion and nominal GDP is $180 billion. The GDP deflator equals

• A) 222.2.
• B) 2.86.
• C) 100.0.
• D) 128.6.
• E) 77.0.

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Definitions:

Process Further

The decision-making process regarding additional operations on a product based on cost and value-added considerations.

Sell Now

A directive or decision to sell an asset or product immediately, often due to market conditions.

Book Value

The net value of an asset as recorded on the balance sheet, calculated as the asset's cost minus any depreciation, amortization, or impairment costs.

Sunk Cost

Costs that have already been incurred and cannot be recovered or altered, and should not affect future business decisions.