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:

LCD Screens

Liquid Crystal Display screens, a technology used in monitors, televisions, and mobile devices for displaying images, utilizing liquid crystals to control light passage.

LED Screens

Display technology using light-emitting diodes as pixels for video display, known for their brightness, energy efficiency, and thin profiles.

Purely Competitive

A market structure characterized by a large number of small firms, homogeneous products, and free entry and exit, where no single firm can influence the market price.

Resource Market

The marketplace where the inputs required for the production process (labor, raw materials, capital etc.) are bought and sold.