Table 5-4 The Country of Caspir Produces Only Cereal and Milk. Quantities

question 291

Multiple Choice

Table 5-4
The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2008.
Prices and Quantities

-Refer to Table 5-4. In 2008, this country's

• A) nominal GDP was greater than real GDP, and the GDP deflator was greater than 100.
• B) nominal GDP was equal to real GDP, and the GDP deflator was equal to 1.
• C) nominal GDP was less than real GDP, and the GDP deflator was less than 100.
• D) nominal GDP was equal to real GDP, and the GDP deflator was equal to 100.

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Definitions:

Automotive Division

A specialized business unit within a larger company that focuses on the development, manufacturing, and sales of automotive vehicles and related services.

Transfer Price

The price at which goods and services are sold between departments within the same company or between subsidiaries.

Commercial Security Division

A branch of a company focused on providing security products and services to businesses and commercial properties.

Transfer Price

The price at which goods and services are sold between divisions within the same company, affecting both divisional performance and overall profitability.