An Index of the Average Prices of All Goods and Services

question 19

Multiple Choice

An index of the average prices of all goods and services throughout the economy is called

• A) the inflation rate.
• B) the GDP deflator.
• C) the interest rate.
• D) the consumer price index.
• E) nominal GDP.

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Definitions:

Net Income

A financial metric that represents the profit of a company after all expenses and taxes have been subtracted from total revenue.

Salary Allowances

Employee benefits added to base salary, such as health insurance, bonuses, or retirement contributions.

Capital Balances

The amount of money that partners or shareholders have contributed to a business or the equity they have in a business.

Net Income

The total profit of a company after all expenses, including taxes and operational costs, have been deducted from total revenue.