Is It Possible to Have a GDP Deflator of Less

question 75

Multiple Choice

Is it possible to have a GDP deflator of less than 100?

• A) Yes; this would indicate a year when prices were lower than in the base year.
• B) Yes; this would indicate a year when output was lower than in the base year.
• C) No; it is mathematically impossible for the deflator to be less than 100.
• D) Yes; this would indicate a year when prices were lower than in the previous year.