Under What Circumstances Would the GDP Deflator Be Less Than

question 100

Multiple Choice

Under what circumstances would the GDP deflator be less than 100 after the base year?

• A)The GDP deflator will be less than 100 if there has been inflation relative to the base year.
• B)The GDP deflator will be less than 100 if there has been inflation of less than 2% per year relative to the base year.
• C)The GDP deflator will be less than 100 if there has been deflation relative to the base year.
• D)There are no circumstances under which the GDP deflator could be less than 100.

Understand how transactions impact financial statements.

Calculate net income using revenues and expenses.

Apply the accounting equation to solve problems.

Identify the primary accounting standard-setting bodies and comprehend their significance.

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