If the GDP Chain Price Index in a Given Year

question 22

True/False

If the GDP chain price index in a given year is greater than 100, real GDP in that year would be greater than nominal GDP.

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Definitions:

May

The fifth month of the year in the Gregorian calendar.

Labor Efficiency Variance

The difference between the actual labor hours used in production and the standard hours expected, multiplied by the standard labor rate.

Labor Rate Variance

The difference between the actual hourly wage paid to workers and the standard or expected wage rate, multiplied by the total hours worked.

Standard Amount

A benchmark or norm set for the quantity or cost of inputs in producing a specific product or in carrying out a process.