If Nominal GDP Grew by 5 Percent and Real GDP

question 74

Multiple Choice

If nominal GDP grew by 5 percent and real GDP grew by 3 percent, then the GDP deflator grew by approximately ______ percent.

• A) 2
• B) 3
• C) 5
• D) 8

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Definitions:

Income Summary

Income Summary is an account in the general ledger used to transfer the revenues and expenses of an accounting period to the retained earnings account.

Salary Allowances

Compensation above the base pay, often for specific purposes such as housing, transportation, or cost of living adjustments.

Profit And Loss

A financial statement detailing the revenues, costs, and expenses incurred during a specific period, highlighting a company's net profit or loss.

Two Proprietorships

Two separate businesses or commercial ventures, each owned by a single individual.