If We Look at Inflation as Measured by the GDP

question 42

Multiple Choice

If we look at inflation as measured by the GDP deflator from 1947 to 2012, we see that

• A)inflation was much higher in 1951 than in 1981
• B)inflation was at its highest in 1975
• C)inflation was at its lowest in 1991
• D)all of the above
• E)none of the above

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Definitions:

Fluctuate Widely

To vary or change significantly over time, often used in the context of prices, rates, or values.

Game-Theory Models

Mathematical models that analyze situations in which the outcome depends on the choices of multiple agents, each with their own preferences.

Interdependence

A relationship between entities where each is mutually reliant on the other, common in global trade, ecosystems, and social networks.

Kinked Demand Curve

A model used in economic theory that suggests prices have a tendency to remain stable because competitors will more likely match price decreases but not price increases.