If the GDP Deflator Rises from 185 to 190,what Is

question 152

Multiple Choice

If the GDP deflator rises from 185 to 190,what is the rate of inflation between the two years?

• A)270%
• B)50%
• C)5%
• D)2.7%

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Definitions:

Production

The process of creating goods or services using labor, technology, materials, and other inputs.

Costs

Expenses incurred in the process of creating, manufacturing, or providing a service or product, including fixed, variable, and semi-variable costs.

Controllable Margin

Contribution margin less controllable fixed costs.

Controllable Fixed Costs

Fixed costs that management has the ability to influence or change in the short term.