Suppose the GDP Deflator Is Currently 115 While the Equilibrium

question 83

Multiple Choice

Suppose the GDP deflator is currently 115 while the equilibrium GDP deflator is 111. In this instance:

• A) an excess supply of goods and services will cause the deflator to increase.
• B) an excess supply of goods and services will cause the deflator to decrease.
• C) an excess demand for goods and services will cause the deflator to decrease.
• D) an excess demand for goods and services will cause the deflator to increase.

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Definitions:

Roman Philosopher

A philosopher from ancient Rome who contributed to various fields of philosophy, including ethics, politics, metaphysics, and logic.

Virtue Prescription

Virtue prescription refers to the advocacy or recommendation of moral virtues as guidelines for ethical behavior and good living.

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Showing a readiness to give more of something, especially money or time, than is strictly necessary or expected.

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Related to the act of giving help, especially financial support, to those in need.