Which of the following is not true for the GDP deflator?
A. It typically reveals a lower inflation rate than the CPI.
B. It refers to all goods and services produced in GDP.
C. It reflects both price changes and market responses.
D. It is based on a fixed basket of goods and services.
Answer: D
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In a persisting demand-pull inflation,
A) aggregate supply decreases and aggregate demand increases. B) aggregate demand decreases and aggregate supply decreases. C) aggregate demand increases and potential GDP decreases. D) aggregate supply increases and aggregate demand increases. E) None of the above answers is correct.
Along the elastic portion of a demand curve, the
A. change in price will always be greater than the change in quantity demanded. B. percentage change in quantity demanded will be less than the percentage change in price. C. change in price will always be less than the change in quantity demanded. D. percentage change in price will be less than the percentage change in quantity demanded.
Use the concept of present value to explain the inverse relationship between the interest rate and the amount of investment a firm undertakes
What will be an ideal response?
The crowding-out effect of an expansionary fiscal policy is likely to be fully or partially offset during a recession.
Answer the following statement true (T) or false (F)