When the CPI Is 300, a Real GDP of $8

question 71

Multiple Choice

When the CPI is 300, a real GDP of $8 trillion is demanded in a given year. If the CPI is 250, which of the following could be the real GDP demanded?

• A) $10 trillion
• B) $8 trillion
• C) $6 trillion
• D) $4 trillion

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Definitions:

Periodic Inventory System

An inventory system that updates inventory records at specific intervals, requiring physical counts to determine inventory levels.

Cost Of Goods Sold

Direct expenditures linked to the production of goods sold by a business.

LIFO Basis

A method of inventory valuation where the last items placed into inventory are the first ones taken out for cost of goods sold calculations.

Periodic Inventory System

An inventory accounting method where inventory levels are updated and physical counts are conducted at specific intervals.