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 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.


A

Economics

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