If GDP Rises by 200 Percent Since the Base Year

question 146

Short Answer

If GDP rises by 200 percent since the base year and output remains the same,then the GDP deflator in the current year is ___.

---

Definitions:

Efficiently Allocated

The optimal distribution of resources among different possibilities to maximize productivity and utility.

Least Cost

The principle of choosing the option that provides the necessary level of benefit or utility at the minimum possible cost.

Production

The process of combining various material inputs and immaterial inputs (plans, know-how) to make something for consumption.

Constant-cost Industry

An industry in which the costs of production do not change as the industry's total output changes.