What Would Be the Result If Intermediate Goods and Services

question 44

Multiple Choice

What would be the result if intermediate goods and services were included in the calculation of GDP?

• A)The GDP would have to be deflated by the inflation rate.
• B)Real GDP would be greater than nominal GDP.
• C)The GDP would be overstated.
• D)The GDP would be understated.

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Definitions:

Income Tax

A tax levied by governments on individuals or entities' income, where the tax rate often varies by the amount of income or profits reported.

Burden Percentage

Burden percentage often relates to the proportion of costs or taxes borne by an entity, indicating its financial impact.

Utilitarian Justice

A principle in ethics suggesting that the best action is the one that maximizes utility or happiness for the greatest number of people.

Total Utility

Full enjoyment obtained by consuming a certain amount of products or services.