Table 5-4 Use the Following Table to Answer the Following Questions

question 99

Multiple Choice

Table 5-4
Use the following table to answer the following questions.
-Refer to the Table 5-4.Using the GDP deflator to measure the average level of prices and using 2013 as the base year,what is the economy's inflation rate?

• A) 20 percent for 2014 and 12.5 percent for 2015
• B) 20 percent for 2014 and 30 percent for 2015
• C) 25 percent for 2014 and 28 percent for 2015
• D) 44.7 percent for 2014 and 45.5 percent for 2015

Recognize the role and calculation of the consumer price index (CPI) in measuring inflation.

Identify factors that cause shifts in real GDP and nominal GDP across different time periods.

Apply knowledge of economic indicators to assess the health and trends in an economy.

Learn how to calculate changes in price levels and inflation rates between different years.

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Definitions:

Inventory Valuation

The method used to assign cost or value to inventory, impacting how cost of goods sold and inventory are reported.

LIFO

An inventory valuation method that assumes the most recently produced items are the first to be sold, with costs calculated accordingly.

Work in Process

Inventory that includes goods that are in the process of being manufactured but are not yet completed.

Raw Materials Inventory

Items acquired for the purpose of processing into finished goods.