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:

Investing Activities

Transactions involving the purchase or sale of long-term assets and investments which are not related to the entity's primary business operations.

Financing Activities

Activities that result in changes in the size and composition of the equity capital and borrowings of an entity.

Unamortized Discount

The portion of a bond issuance discount that has not yet been expensed to interest over the bond’s life.

Journal Entry

A record in accounting that notes the details of a financial transaction.