The GDP Deflator

question 6

Multiple Choice

The GDP deflator:

• A) measures the average price for a basket of goods bought by an average consumer.
• B) measures the average price received by producers.
• C) measures the average price of all final goods and services produced.
• D) is the price index adjusted with changes in GDP.

---

Definitions:

X-axis

The horizontal axis in a two-dimensional graph, typically representing the independent variable.

Positive Relationship

A positive relationship in economics indicates that an increase in one variable is associated with an increase in another variable.

Cartesian Coordinate System

A coordinate system that specifies each point uniquely in a plane by a set of numerical coordinates, which are the distances to the point from two perpendicular directed lines.

Variable

An element, feature, or factor that is likely to vary or change; in scientific experiments, the characteristic that is tested to observe its effects.