The GDP deflator in year 2 is 105, using year 1 as the base year. This means that, on average, the cost of goods and services is
A) 5% higher in year 1 than in year 2. B) 105% higher in year 1 than in year 2.
C) 105% higher in year 2 than in year 1. D) 5% higher in year 2 than in year 1.
D
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To make rational forecasts, your predictions do not have to be correct all of the time.
Answer the following statement true (T) or false (F)
For automobile demand in the U.S., the income response tends to be larger in the:
A) short run. B) long run. C) The income response is the same in the long run and the short run. D) We do not have enough information to answer this question.
A decline in the quantity of real output demanded along the aggregate demand curve is a result of a(n):
A. decrease in the level of income. B. decrease in the price level. C. increase in the price level. D. increase in the level of income.
Which one of the following is the best example of an oligopolistic industry?
A. cigarettes B. wheat growers C. apple growers D. public utilities