The GDP deflator in year 2 is 95 using year 1 as a base year. This means that, on average, the price of goods and services is
A. 5% higher in year 2 than in year 1.
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 1 than in year 2.
Answer: D
You might also like to view...
The Marginal Propensity to Consume (MPC) is defined as the change in
a. C over the change in DI. b. income over the change in disposable income. c. DI over the change in C. d. total income over the change in net income.
Higher nominal interest rates ________ the amount of money demanded and a higher price level ________ the amount of money demanded.
A. decrease; decreases B. decrease; increases C. increase; decreases D. increase; increases
Okun's Law says that the difference between the unemployment rate and the natural unemployment rate determines
A) potential GDP. B) real GDP. C) the real interest rate. D) the gap between potential GDP and real GDP. E) the gap between the inflation rate and the unemployment rate.
As cities grew and markets developed, life, fire and death insurance companies emerged to manage risks and help groups of individuals during disasters
Indicate whether the statement is true or false