If you have $1,000 and the Gross Domestic Product (GDP) deflator increases from 100 to 120, then
A) the $1,000 will buy 20 percent less of the goods and services produced by society.
B) the $1,000 will buy 20 percent more of the goods and services produced by society.
C) the value of the $1,000 increases.
D) you will be able to buy fewer goods, but the real value of those goods will increase.
Answer: A) the $1,000 will buy 20 percent less of the goods and services produced by society.
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