Which of the Following Calculations Will Yield the Correct Measure

question 39

Multiple Choice

Which of the following calculations will yield the correct measure of real GDP?

• A)divide nominal GDP by the consumer price index
• B)divide the GDP deflator by the consumer price index
• C)multiply nominal GDP by the consumer price index
• D)multiply nominal GDP by the GDP deflator
• E) none of the above

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Definitions:

Receivables

Money owed to a business by its clients or customers for products or services delivered but not yet paid for.

Money Claims

Legal rights or entitlements to a certain amount of money, which can be the result of debts, damages, or other financial obligations owed to a person or entity.

Allowance Method

An accounting technique used to estimate and account for potential uncollectible accounts receivable.

Direct Write-off Method

An accounting practice where uncollectible accounts receivable are directly removed from the books at the time they are deemed nonrecoverable.