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The GDP Deflator of a Country in the Base Year

question 137

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The GDP deflator of a country in the base year was 100,and it is 130 in the current year.This implies that the prices of final goods and services produced in the country have increased by ________ between the two years.


Definitions:

Absorption Costing

Absorption costing is a method in accounting that includes all manufacturing costs - both direct and indirect - in the cost of a product.

Variable Costing

An accounting method where only variable production costs are included in product costs, with fixed overhead treated as a period cost.

Net Operating Income

A monetary measurement that determines an organization's profit by deducting operational costs from its operational revenue.

Absorption Costing

A costing method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.

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