If the Base Year for the GDP Deflator Is 2000

question 223

Multiple Choice

If the base year for the GDP deflator is 2000 and the value of the GDP deflator in 2003 was 107,this indicates that the general level of prices

• A)declined between 2000 and 2003.
• B)was approximately 7 percent lower in 2003 than in 2000.
• C)was approximately 7 percent higher in 2003 than in 2000.
• D)was approximately 107 percent higher in 2003 than in 2000.

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Definitions:

Punitive Damages

Monetary compensation awarded to an aggrieved party that goes beyond what is necessary to compensate for losses, intended to punish the wrongdoer.

Compensatory Damages

Monetary damages awarded to a plaintiff to compensate for actual loss or injury.

American Institute of Certified Public Accountants

A national professional organization for Certified Public Accountants (CPAs) in the United States, focused on setting ethical standards and auditing procedures.

GAAS

Stands for Generally Accepted Auditing Standards, which are the guidelines auditors follow to ensure their audits are conducted objectively and consistently.