If the GDP Deflator in 2011 Was 130 Compared to a Value

question 68

Multiple Choice

If the GDP deflator in 2011 was 130 compared to a value of 100 during the 2005 base year, this would indicate that

• A) the inflation rate during 2011 was 30 percent.
• B) the general level of prices during 2011 was 30 percent higher than during 2005.
• C) the inflation rate during 2011 was 130 percent.
• D) nominal GDP grew by 30 percent during 2011.
• E) real GDP was 30 percent higher in 2011 than 2005.

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