If the GDP Deflator Is 142,by How Much Have Prices

question 166

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%.

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Definitions:

Budgeted Cash Disbursements

An estimate of all cash payments that a business plans to make over a specific period, including operating expenses, purchase of assets, and other payouts.

Variable Selling Expense

includes costs that vary directly with sales volume, such as commissions, shipping charges, and promotional expenses.

Direct Labor Wage Rate

The amount paid per hour or per unit of production to employees who directly manufacture or assemble products.

Raw Materials Cost

The total expense associated with the raw materials used in the production of goods or services.