If the GDP Deflator Is 200 and Nominal GDP Is

question 127

Multiple Choice

If the GDP deflator is 200 and nominal GDP is $1 trillion billion, what is real GDP?

• A)$5 billion
• B)$200 billion
• C)$500 billion
• D)$2 trillion

---

Definitions:

Short-Term Notes Receivables

Short-duration financial assets representing amounts owed to a company that must be paid within a year.

Allowance Account

An accounting practice used to create a buffer for potential future losses on receivables, also known as a provision for doubtful debts.

Gross Realizable Value

The estimated selling price of goods minus any costs associated with the completion and sale of those goods.

Promissory Note

A financial instrument where the writer promises to pay a specific sum to a specified person or bearer at a determined date.