GDP Deflator Is

question 40

Multiple Choice

GDP deflator is

• A)a price index that measures the overall level of prices of goods and services included in GDP.
• B)a price index that measures the overall level of prices of goods and services included in household baskets.
• C)obtained by dividing real GDP over nominal GDP.
• D)obtained by measuring the price of goods and services in a base year.

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Definitions:

Income Offer Curve

A graphical representation showing how changes in income affect the quantities of goods consumed, holding prices constant.

Prices

The monetary value necessary to acquire a good or service.

Income

Periodic earnings from professional activities or financial investments.

Utility Function

A mathematical representation that defines the satisfaction or utility a consumer derives from consuming different bundles of goods and services.