Suppose That Increases in the Prices of Canadian Medical Care

question 51

Multiple Choice

Suppose that increases in the prices of Canadian medical care cause the CPI to increase by 2 percent,while all other prices remain the same.How much will the GDP deflator most likely increase by?

• A) 0.0 percent
• B) 0.4 percent
• C) 2.0 percent
• D) 2.4 percent

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Definitions:

Investment Turnover

A ratio that measures the efficiency of a company in using its investments to generate sales or revenue.

Operating Income

The income generated from the primary activities of a company, before subtracting any interest and tax expenses.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, representing the proportion of sales that turns into profit.

Operating Income

Income generated from the core operations of a company, excluding non-operating income and expenses, such as interest or tax.