Suppose the GDP Implicit Price Deflator Was 112

question 120

Multiple Choice

Suppose the GDP implicit price deflator was 112.7 in 2015 and 116.0 in 2016.Therefore,the inflation rate in 2016 would be

• A) 2.8%.
• B) 2.9%.
• C) 3.3%.
• D) 16%.

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Definitions:

Debit Balance

An accounting entry that shows a company owes money or has an asset; it appears on the left side of a ledger.

Right Side

In accounting, typically refers to the credit side of a double entry bookkeeping system.

Asset Account

A financial account that tracks the value of assets owned by an individual, company, or entity.

Liability Account

A liability account records debts or obligations a company owes to others, appearing on the balance sheet.