The Market Basket Used for Computing the Implicit Price Deflator

question 82

Multiple Choice

The market basket used for computing the implicit price deflator for a particular period includes:

• A) all final goods and services consumed in that period.
• B) all final goods and services produced in that period.
• C) all final and intermediate goods and services produced in that period.
• D) all intermediate goods produced in that period.

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Definitions:

Short-Run Losses

Financial deficits that a firm experiences in the period where at least one factor of production is fixed, leading to an inability to cover total costs.

Operate

The act of functioning or running a business or machine, carrying out actions necessary for performance.

Average Variable Cost

the total variable cost divided by the quantity of output produced; it shows the variable cost per unit of output.

Short Run

The short run is a period in which at least one factor of production is fixed, limiting the ability of a business to expand or reduce its output.