Table 12-14 -Refer to Table 12-14

question 194

Multiple Choice

Table 12-14
$$\begin{array} { | c | c | c | } \hline \text { Year } & \begin{array} { c } \text { Nominal } \\\text { GDP }\end{array} & \text { Real GDP } \\\hline 2012 & 14,078 & 13,254 \\\hline 2013 & 14,441 & 13,312 \\\hline\end{array}$$
-Refer to Table 12-14.Consider the following data on nominal GDP and real GDP (values are in billions of dollars) : The GDP deflator for 2013 equals

• A)92.2.
• B)102.6.
• C)108.5.
• D)109.1.

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Definitions:

Net Operating Income

Income originating from a corporation's central business endeavors, excluding subtractions for interest and taxes.

Variable Component

A portion of a cost or expense that varies directly with changes in production volume, business activity, or other variables.

Least-Squares Regression

A statistical method used to determine a line of best fit by minimizing the sum of the squares of the differences between observed values and those predicted by the model.

Inspection Cost

Expenses associated with the activities necessary to ensure that products or services meet the required standards and specifications.