Table 12-25 -Refer to Table 12-25

question 167

Essay

Table 12-25
$\begin{array}{|l|l|l|}\hline & \mathbf{2 0 1 7} & {\mathbf{2 0 1 8}} \\\hline \text { Nominal GDP } & \$ 10,000 & \$ 15,000 \\\hline \text { Real GDP } & 10,000 & 14,000 \\\hline\end{array}$
-Refer to Table 12-25.Given the information above,calculate the GDP deflator for both 2017 and 2018.What does the value of the deflator in the year 2017 tell you about that year with respect to the base year? What happened to prices in 2018 as compared to 2017?

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Definitions:

Total Job Cost

The complete cost of a specific job or project, including materials, labor, and overhead.

Predetermined Manufacturing Overhead Rate

An estimated rate used to assign manufacturing overhead costs to products or job orders, calculated before the periods begins based on expected annual overhead costs and activity levels.

Manufacturing Overhead

All indirect manufacturing costs, including costs related to running the production facility but not directly linked to individual products.

Machine-Hours

A measure of the amount of time machines are used in the production process, often utilized as an allocation base for applying overhead costs to products.