The GDP Deflator Provides a Measure of Which of the Following

question 11

Multiple Choice

The GDP deflator provides a measure of which of the following?

• A) Real GDP divided by the aggregate price level.
• B) The ratio of nominal GDP to real GDP.
• C) The ratio of GDP to the size of the population.
• D) The ratio of GDP to the number of workers employed.
• E) The price of a typical consumer's basket of goods.

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Definitions:

Less Than Price

A situation where the selling price of a good or service is below its cost or perceived value.

Marginal Revenue

The extra revenue generated by selling an additional unit of a product or service.

Monopolist

An entity that is the sole provider of a particular product or service in the market, facing no direct competition.

Quantity Effect

The impact on total revenue or expenditure when the quantity sold of a good or service changes, holding its price constant.