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The GDP Deflator for a Given Year Is Equal to 100

question 340

True/False

The GDP deflator for a given year is equal to 100 times nominal GDP for that year divided by real GDP for that year expressed in prices of a selected base year.


Definitions:

Straight Line Amortization

A method of gradually reducing the book value of an intangible asset over its useful life in equal installments.

Goodwill Impairment

The process of reducing the book value of goodwill on the balance sheet if the fair value of the entity is less than its carrying amount.

Intercompany Sales

Transactions involving the exchange of goods or services between subsidiaries of the same parent company.

After-Tax Dollar Value

The net value of an investment, income, or transaction after accounting for the effects of income taxes.

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