If GDP Rose by 5 Percent Per Year and the GDP

question 214

Multiple Choice

If GDP rose by 5 percent per year and the GDP deflator fell by 3 percent per year,the percentage change in real GDP was

• A)2%.
• B)8%.
• C)15%.
• D)-2%.

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Definitions:

Raw Materials

The basic material from which a product is made, typically used in the manufacturing or production process.

Indirect Cost

Expenses not directly linked to the production of goods or services, such as rent, utilities, and administrative salaries.

Cost Object

Anything for which cost data are desired. Examples of cost objects are products, customers, jobs, and parts of the organization such as departments or divisions.

traceability Of Costs

The ability to assign direct costs to specific cost objects and to allocate indirect costs accurately.