Figure 2-15 Information from the Records of Chrome Ponies Enterprises for June

question 184

Multiple Choice

Figure 2-15
Information from the records of Chrome Ponies Enterprises for June 2016 is as follows:
Inventories

-Refer to Figure 2-15. What is the cost of goods sold?

• A) $36,500
• B) $28,600
• C) $29,400
• D) $29,500

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Definitions:

Nominal GDP

The market value of all final goods and services produced in a country in a given period, measured in current prices.

GDP Deflator

An index measuring the change in prices of all new, domestically produced goods and services in an economy.

Real Output

The total value of all goods and services produced in an economy, adjusted for inflation, reflecting the actual productivity rather than nominal figures.

Government Purchases

These refer to the total expenditures for goods and services by all levels of government, excluding transfer payments.