Suppose That Increases in the Prices of Canadian Medical Care

question 51

Multiple Choice

Suppose that increases in the prices of Canadian medical care cause the CPI to increase by 2 percent,while all other prices remain the same.How much will the GDP deflator most likely increase by?

• A) 0.0 percent
• B) 0.4 percent
• C) 2.0 percent
• D) 2.4 percent

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Definitions:

Projection

A defense mechanism where individuals attribute their own unacceptable thoughts, feelings, or motives to another person.

Life Instincts

In psychoanalysis, these are the drives or instincts that are directed towards preservation and enhancement of life, including basic needs such as hunger and sex.

Death Instincts

In Freudian psychology, innate drives or impulses leading towards aggression, self-destruction, and death, opposed to life-sustaining instincts.

Human Instincts

Innate, typically fixed patterns of behavior in animals or humans in response to certain stimuli.