What Does It Mean If the GDP Deflator Is 100

question 73

Multiple Choice

What does it mean if the GDP deflator is 100 this year?  

• A) No inflation occurred during this year. 
• B) This year's price level is the same as it was in the base year. 
• C) This year's price level is one hundred times what it was in the base year. 
• D) This year's price level is double what it was in the base year.

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Definitions:

Internal Combustion Engine

An engine in which the combustion of a fuel occurs with an oxidizer in a combustion chamber.

Steam Engine

A heat engine that performs mechanical work using steam as its working fluid, playing a crucial role in the Industrial Revolution by powering machinery, locomotives, and ships.

Toxic Dumps

Sites where hazardous waste is disposed of without proper precautions, often causing environmental contamination and health issues for nearby communities.

Oil Refineries

Oil refineries are industrial processing plants where crude oil is transformed and refined into more useful products like gasoline, diesel, and other petrochemicals.