The GDP Deflator Is

question 55

Multiple Choice

The GDP deflator is:

• A) a weighted average of the prices of goods and services purchased by a typical urban household.
• B) a weighted average of the prices of goods and services purchased by a typical manufacturer.
• C) a weighted average of the prices of all final goods and services produced in the economy.
• D) a weighted average of the prices of all intermediate goods and services produced in the economy.

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Definitions:

Posting

The process of recording financial transactions in the appropriate accounts in the ledger of a business.

Prepaid Insurance

An asset account representing the advance payment for insurance coverage, which will be expensed over the period of coverage.

Insurance Premiums

Payments made to an insurance company in exchange for coverage, which can be paid monthly, quarterly, or annually.

Insurance Expense

The cost reported by a company for premiums it pays on its insurance policies, covering risks such as property damage, theft, or liability.