If Nominal GDP for a Particular Year Is $6 Trillion

question 200

Multiple Choice

If nominal GDP for a particular year is $6 trillion and real GDP for that year is $5 trillion,then the GDP price index for that year is

• A)1.2
• B)17
• C)20
• D)83
• E)120

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Definitions:

Baker's Wages

Baker's wages refer to the compensation paid to bakery workers or bakers for their labor and expertise in producing baked goods.

Prime Costs

The direct costs of manufacturing a product, which include direct materials and direct labor.

Conversion Costs

The costs incurred when converting raw materials into finished products, typically including direct labor and manufacturing overhead.

Production Labor Wages

The total amount of compensation paid to employees directly involved in the production of goods or services.