Table 23-4 The Table Below Contains Data for the Country of Dachsland,which

question 48

Multiple Choice

Table 23-4
The table below contains data for the country of Dachsland,which produces only pretzels and books.The base year is 2005.

-Refer to Table 23-4.In 2006,Dachsland's

• A) nominal GDP was $585,real GDP was $660,and the GDP deflator was 88.6.
• B) nominal GDP was $585,real GDP was $670,and the GDP deflator was 87.3.
• C) nominal GDP was $760,real GDP was $660,and the GDP deflator was 115.2.
• D) nominal GDP was $760,real GDP was $670,and the GDP deflator was 113.4.

---

Definitions:

Excise Tax

A tax applied to specific goods, services, or activities, often with the intention of reducing consumptions, such as taxes on tobacco or alcohol.

Tax Incidence

The study of who ultimately bears the economic burden of a tax, whether producers or consumers.

Inelastic Demand

A situation where the demand for a product does not significantly change with a change in its price.

Excise Tax

A tax levied on the sale of particular goods and services, such as alcohol, tobacco, and gasoline.