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Use the Formula for the GDP Deflator to Explain How

question 158

Essay

Use the formula for the GDP deflator to explain how it is affected by an increase in prices in the economy.If the value of the deflator equals 100,what does that tell you about that year with respect to the base year?


Definitions:

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, which processes and sends out neural information.

Involuntary Reflexes

Automatic, unconscious body responses to certain stimuli that do not involve the brain's direct command.

Conditioning

A process of behavior modification by which a subject comes to associate a desired behavior with a previously unrelated stimulus.

Handedness

The preference most people show for using one hand over the other for tasks; typically described as being right-handed, left-handed, or ambidextrous.

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