If the GDP Deflator Rises from 185 to 190,what Is

question 152

Multiple Choice

If the GDP deflator rises from 185 to 190,what is the rate of inflation between the two years?

• A)270%
• B)50%
• C)5%
• D)2.7%

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Definitions:

Externalities

Externalities are indirect effects of economic activities on third parties, which can be either positive or negative.

Negative Externality

A situation where a third party is adversely affected by the outcome of a transaction or activity between others, not compensated by those causing the impact.

Acid Rain

Acid rain is precipitation with a high concentration of acidic components, typically resulting from industrial emissions that affect water, soil, and living conditions adversely.

Tradable Pollution Permits

Licenses that allow the holder to emit a certain amount of pollution that can be bought and sold, aiming to reduce overall pollution in a cost-effective manner.