In Year One,the GDP Deflator Is 100 and in Year

question 72

Multiple Choice

In year one,the GDP deflator is 100 and in year two 110.If nominal GDP in year two is $300 billion,what is real GDP for year two?

• A)$200 billion.
• B)$100 billion.
• C)$272.73 billion.
• D)$220 billion.

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Definitions:

FICA Tax

Taxes required by the Federal Insurance Contributions Act, funding Social Security and Medicare benefits.

FUTA Tax

The Federal Unemployment Tax Act tax, which employers pay to help fund state workforce agencies.

SUTA Tax

A state unemployment tax assessed by individual states on employers, used to fund their unemployment insurance and job service programs.

Medicare

A federal health insurance program in the United States primarily for people aged 65 and older, as well as for some younger individuals with disabilities.