An Inflation Rate of 5% Between 2015 and 2016 Would

question 104

Multiple Choice

An inflation rate of 5% between 2015 and 2016 would be implied by a change in the GDP deflator from ________ in 2015 to ________ in 2016.

• A)105;115
• B)200;205
• C)400;420
• D)375;390

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Definitions:

Fiscal Year

A fiscal year is a 12-month period that companies and governments use for accounting and budget purposes, which may or may not align with the calendar year.

Cash Dividends

The portion of a company's earnings that is distributed to shareholders in the form of cash payments.

Fiscal Year

A 12-month period used for accounting purposes, which may not necessarily align with the calendar year.

Statement of Cash Flows

A financial report that summarizes the amount of cash and cash equivalents entering and leaving a company, showing how the company raises and spends money during a specific period.