If the GDP Deflator Rises from 185 to 190, What

question 94

Multiple Choice

If the GDP deflator rises from 185 to 190, what is the percentage increase in the price level between the two years?

• A)270%
• B)50%
• C)5%
• D)2.7%

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Definitions:

Probability

A numerical expression between 0 and 1 that indicates how likely an event is to occur.

Property Loss

Property loss refers to the damage or destruction of property, leading to a financial loss to the owner or insured party.

Adverse Selection

This occurs when there is a lack of symmetric information prior to a deal, leading parties with higher risk to be more likely to engage in an agreement, notably impacting insurance and finance markets.

Reckless Drivers

Individuals who operate vehicles in a careless or heedless manner without regard for the rules of the road or the safety of others.