Suppose the GDP Deflator Is Currently 121 While the Equilibrium

question 23

Multiple Choice

Suppose the GDP deflator is currently 121 while the equilibrium GDP deflator is 128. 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:

Pending Offer

An offer that has been made but not yet accepted, awaiting a decision or certain conditions to be met.

Job Offer

A formal proposal by an employer to a candidate to take up a position of employment.

Delay

The act of postponing or slowing down a process, event, or action, resulting in a later occurrence than was originally planned or expected.

Demand Decision

Demand decision involves making strategic choices regarding the demand for products or services to optimize production, sales, and inventory management.