The GDP deflator for this year is calculated by dividing the used by the using and multiplying by 100. However, the CPI reflects only the prices of all goods and services; therefore the correct option is True.
The GDP deflator for this year is determined by multiplying by 100, then dividing the value of all goods and services produced in the economy this year at prices from this year by the value of all goods and services produced in the economy this year at prices from the base year. The CPI, however, only includes the costs of all consumer purchases of goods and services.
The CPI, a different economic term used to describe the consumer price index, and the GDP deflator are closely related. The GDP deflator can determine if there was inflation or deflation in the national economy for a specific year by using the CPI.
Therefore the correct option is True.
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Answer:
National income
Explanation:
Income method of gross domestic product (GDP) measurement is focused onto the accounting fact that almost all economic spending should be equivalent to the amount of revenue earned by the output of all consumer products and services.
This method also supposes that an economy has 4 major production determinants and all earnings must go to any of these 4 sources. Thus a simple calculation of the gross tangible value of commerce over a span could be made by combining all revenue sources.
Thus, from the above we can conclude that the correct option is C.
Answer:
The amount of dividends common shareholders will receive in 2018 is $21,300
Explanation:
The computation of amount of dividend of common shareholders is shown below:
Previous year stock dividend (2017 & 2016) = ($570,000 × 7% ) - 37000 × 2
= $5800
Current year stock dividend 2017 = $570,000 × 7% = $39900
Current year cash dividend 2018= $67,000
Now, subtract the 20178 stock dividend and previous year stock dividend from Current year cash dividend 2018 which equals to $21,300
= $67,000 - $39900 - $5800
= $21,300
Thus, the amount of dividends common shareholders will receive in 2018 is $21,300