The GDP Deflator in Year 2 Is 105,using Year 1

question 89

Multiple Choice

The GDP deflator in year 2 is 105,using year 1 as the base year.This means that,on average,the cost of goods and services is

• A)5% higher in year 2 than in year 1.
• B)105% higher in year 2 than in year 1.
• C)5% higher in year 1 than in year 2.
• D)105% higher in year 1 than in year 2.

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Definitions:

Theorist

An individual who formulates theories or is skilled in developing theoretical models in a particular field of study.

Siegler

A reference to Robert Siegler, a prominent figure in the field of developmental psychology known for his work on children's cognitive development and problem-solving strategies.

Cognitive Development

Refers to the growth and change in mental capabilities such as thinking, reasoning, problem-solving, and understanding over the lifespan.

Piaget

A Swiss psychologist famous for his pioneering work in child development, Jean Piaget's theory of cognitive development outlines how children progress through distinct stages of intellectual growth.