Suppose in 2007, Nominal GDP in a Country Clarendon Was

question 144

Multiple Choice

Suppose in 2007, nominal GDP in a country Clarendon was $12,840 billion and real GDP was $10,560 billion. Calculate the value of the implicit price deflator, in the way such numbers are normally published.

• A) 21.59
• B) 82.24
• C) 121.59
• D) 177.57

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Definitions:

Original Issue Discount

The difference between the par value (or face value) of a bond and the lower price at which it is originally sold, which effectively represents interest paid to the bondholder.

Interest Income

Income earned from the lending of funds or depositing money in interest-bearing accounts.

OID

Original Issue Discount; it refers to the difference between the original issue price of a bond and its maturity value, treated as interest for tax purposes.

Series I Savings Bonds

A type of U.S. savings bond designed to protect the value of your cash from inflation.