Say That Nominal GDP in 1990 Was $1,015

question 52

Multiple Choice

Say that nominal GDP in 1990 was $1,015.5 billion, and in 2000 it was $2,732.0 billion. The GDP deflator is 42.0 for 1990 and 85.7 for 2000, where 1992 is the base year. Calculate the percent change in real GDP in the decade from 1990 and 2000. Round off to the nearest percentage point.

• A) 32%
• B) 104%
• C) 132%
• D) 169%

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Definitions:

Market Price Method

A valuation method where inventory or assets are valued based on current market prices rather than historical cost or other valuation methods.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and losses, representing the company's profitability.

Premium Wheat

Refers to wheat that is of higher quality than standard wheat, often meeting certain criteria for size, condition, and protein content, and therefore commands a higher price in the market.

Cost Recovery Method

An accounting technique used when the future collectibility of revenue is uncertain, recognizing revenue only when cash payments are received.