An Increase in the Price of Dairy Products Produced Domestically

question 40

Multiple Choice

An increase in the price of dairy products produced domestically will be reflected in

• A)both the GDP deflator and the consumer price index.
• B)neither the GDP deflator nor the consumer price index.
• C)the GDP deflator but not in the consumer price index.
• D)the consumer price index but not in the GDP deflator.

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Definitions:

Wages Payable

An account that reflects the total amount owed to employees for work performed that has not yet been paid.

Dividends

Payments made by a corporation to its shareholder members, usually derived from profits.

Accounts Receivable

Amounts due from customers for merchandise or services rendered by a corporation, still awaiting payment.

Utilities Expense

Costs incurred by a business for basic utilities such as water, electricity, gas, and sewage services.