Suppose Nominal GDP in 2009 Does Not Change (Compared Its

question 43

Multiple Choice

Suppose nominal GDP in 2009 does not change (compared its previous level in 2008) .Given this information,we know with certainty that

• A)real GDP increased during 2009.
• B)the GDP deflator increased during 2009.
• C)both the GDP deflator and real GDP fell during 2009.
• D)more information is needed to answer this question.

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Definitions:

Activity Rates

In activity-based costing, the costs assigned to goods and services based on the specific activities and resources that go into their production or delivery.

Activity Cost Pools

Aggregations of all the costs associated with a particular activity, used in activity-based costing.

Departmental Overhead Rates

Refers to the allocation of indirect costs to specific departments within a company, which is used for cost control and pricing decisions.

Machine Hours

A measure of production activity; the total hours that machines are operating in a manufacturing process.