Real GDP Is GDP Adjusted for Changes In

question 108

Multiple Choice

Real GDP is GDP adjusted for changes in:

• A) overall employment levels.
• B) overall price levels.
• C) overall output levels.
• D) the level of the interest rate.
• E) the level of unemployment.

---

Definitions:

LIFO

Last In, First Out, is an inventory valuation method assuming that goods purchased last are the first to be sold.

FIFO

First In, First Out, a method used in accounting to manage inventory and financial matters where the first items placed in inventory are the first sold or used.

Average Cost

A method of inventory valuation that calculates the cost of goods sold and ending inventory based on the weighted average cost of all goods available for sale.

First-In, First-Out

An inventory valuation method where the cost of the earliest goods purchased are the first to be recognized in determining cost of goods sold.