If the GDP Deflator in 2009 Was 120 Compared to a Value

question 193

Multiple Choice

If the GDP deflator in 2009 was 120 compared to a value of 100 during the 2004 base year, this would indicate that

• A) the inflation rate during 2009 was 20 percent.
• B) the general level of prices during 2009 was 20 percent higher than during 2004.
• C) the inflation rate during 2009 was 120 percent.
• D) real GDP was 20 percent higher in 2009 than 2004.

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Definitions:

Labour Input

The total hours worked by employees or the effort put in by employees towards the production of goods or services.

Gain-Sharing Plans

Performance-based compensation strategies designed to encourage teamwork and improve productivity by sharing the financial gains with employees.

Historical Baseline

A reference point derived from past data, typically used for comparison with current data to monitor changes or progress over time.

Productivity Gains

Increases in the output of goods or services per unit of input, often as a result of improvements in efficiency or technology.