The GDP Deflator or Price Index Equals

question 106

Multiple Choice

The GDP deflator or price index equals:

• A) Gross private domestic investment less the consumption of fixed capital
• B) Gross national product less net foreign factor income earned in the United States
• C) Nominal GDP divided by real GDP
• D) Real GDP divided by nominal GDP

---

Definitions:

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest of shareholders in a company.

Ending Capital Balance

Ending capital balance is the amount of money a company has in its capital account at the end of a financial period after all financial transactions have been accounted for.

Beginning Capital Balance

The amount of capital at the start of a financial period before any transactions have been accounted for during the period.

Withdrawals

Money or assets taken out from a business by its owner for personal use or from a bank account by the account holder.