The GDP Deflator Can Be Used to Track

question 111

Multiple Choice

The GDP deflator can be used to track:

• A) the interest rate.
• B) the GDP growth rate.
• C) consumer confidence.
• D) inflation.

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Definitions:

Income Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in consumers' income.

Quantity Demanded

The amount of a good or service that consumers are willing to buy at a specific price, at a given time.

Own Price Elasticity

A measure of how the quantity demanded of a good responds to a change in the price of that good, keeping other factors constant.

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