The GDP Deflator

question 87

Multiple Choice

The GDP deflator:

• A)measures the price changes of a fixed basket of goods and services.
• B)measures the price changes of all final goods and services produced.
• C)measures the price changes of just goods consumed by the household sector.
• D)none of the above.

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Definitions:

Basis Points

A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument.

Duration Mismatch

The disparity between the sensitivity of asset prices and liability values to changes in interest rates, affecting firms and financial institutions' balance sheets.

S&P 500

A market index representing 500 of the largest companies listed on American stock exchanges.

Pension Funds

Investment pools that collects money from employees for future retirement benefits.