If the GDP Deflator Is 142, by How Much Have

question 109

Multiple Choice

If the GDP deflator is 142, by how much have prices changed since the base year?

• A)Prices have increased by 42%.
• B)Prices have increased by 142%.
• C)Prices have decreased by 4.2%.
• D)Prices have increased by 58%.
• E)Prices have increased by 70.5%.

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Definitions:

Break-even Sales

The instance at which all costs are balanced by all revenues, resulting in neither gain nor loss.

Break-even Point

The level of production or sales at which total revenues equal total expenses, resulting in no profit or loss.

Fixed Expenses

Costs that are static in total over a particular period, not varying with production volume or sales, such as salaries and rent.

Break-even Point

The level of production or sales at which total costs equal total revenue, meaning the business neither makes a profit nor a loss.