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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Definitions:

Interest Rates

The cost of borrowing money, expressed as a percentage of the amount borrowed.

Maturity Date

The final day of a note on which the borrower (the maker of the note) pays the face value and any interest due to the holder of the note. The due date.

Dollar Amount

The specific value of a transaction or balance in currency terms.

Interest Earned

The income received from investing in financial instruments or depositing money in interest-bearing accounts.