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Novay_Z [31]
3 years ago
5

Which of the following is correct?

Business
1 answer:
goldfiish [28.3K]3 years ago
4 0

Answer:

Option (B) is correct.

Explanation:

Gross domestic product (GDP) deflator determines the prices of all the good and services produced within the nation whereas consumer price index (CPI) calculates the price of goods and services that are bought by the consumers.

GDP deflator only includes the goods and services that are produced domestically which means that it doesn't include imported goods but in case of CPI, it includes the price of all the imported goods that are bought by the consumers.

Therefore, above are the reasons why CPI is better than GDP deflator at indicating the prices of the goods and services that are bought by the consumers of a nation.

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2 years ago
Jonathan (an individual) owns 100% of the stock of Husky, Inc. (a C corporation) and 100% of the stock of Calhoun, Inc. (another
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B. No treatment.

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B. A C Corporation is by definition taxed SEPARATELY from it's owners in the United States of America. Seeing as both Corporations were C Corporations, Jonathan as the owner of both companies need not worry about how he should treat the $100,000 payment as he will not ne taxed on it.

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Answer:

GDP reduces.

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