Which of the Following Represents How Real GDP Is Calculated

question 335

Multiple Choice

Which of the following represents how real GDP is calculated?

• A) nominal GDP multiplied by the GDP deflator
• B) nominal GDP divided by the population
• C) nominal GDP divided by the PPI, the producer price index
• D) nominal GDP divided by the GDP deflator

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Definitions:

Interest Revenue

Income earned from investments in interest-bearing assets like bonds, loans, and savings accounts.

Bargain Purchase Option

An option in a lease agreement that allows the lessee to purchase the leased asset at the end of the lease term for a price significantly lower than the expected fair market value.

Equipment Leased

Assets acquired for use over a specified period through a rental agreement, where ownership remains with the lessor.

Accumulated Depreciation

The cumulative depreciation of an asset up to a single point in its life, representing the wear and tear or obsolescence.