The GDP Deflator Is a Measure of the Price Level

question 250

True/False

The GDP deflator is a measure of the price level which is calculated as nominal GDP divided by real GDP and multiplied by 100.

---

Definitions:

Account Settlement

The process of reconciling and closing an account by paying off any outstanding balance.

Cost Of Goods Sold

Costs directly connected to the production of a company's sold merchandise.

Cost Of Goods Purchased

The total expense incurred to buy goods over a period, including transportation and handling, not yet necessarily sold.

Net Purchases

Net purchases refer to the total cost of purchases after adjusting for returns, allowances, and discounts over a specific period.