The 'GDP Deflator' Is a Measure of the Price Level

question 85

Multiple Choice

The 'GDP deflator' is a measure of the price level and is calculated by dividing ________ by ________ and multiplying by 100.

• A)real GDP; nominal GDP
• B)real GDP; the price level
• C)nominal GDP; real GDP
• D)the price level; nominal GDP

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Definitions:

Depletion Rate

The rate at which a natural resource is used or consumed, important for accounting and valuation of resource-based companies.

Extractable Ore

Refers to the portion of a mineral or natural resource deposit that can be economically and legally extracted or produced at the time of consideration.

Units-Of-Production Method

An approach to depreciation that allocates an asset's cost based on its use, output, or production, rather than passing time.