Suppose That GDP in Current Dollars Was $360 Billion in 2006

question 37

Multiple Choice

Suppose that GDP in current dollars was $360 billion in 2006 and $450 billion in 2012.The GDP deflator was 120 in 2006 and 125 in 2012.It can be concluded that,between 2006 and 2012,real GDP:

• A)increased by about $5 billion
• B)decreased by about $32 billion
• C)increased by about $100 billion
• D)increased by about $117 billion
• E)increased by about $60 billion

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Definitions:

Purchases Account

An account used in accounting to record the total cost of goods purchased during a specific period, including both cash and credit purchases.

Raw Materials

The basic materials from which a product is made, used in manufacturing processes.

Raw Materials

Basic materials that are used in the production process to manufacture goods, including commodities or components, before they are processed.

Specific Jobs

Work assignments or projects that are distinct and identifiable in their objectives, scope, and duration.