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.

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Definitions:

Division Profits

The financial gains realized by a specific division within a larger company or organization.

Company-wide Profits

The total earnings of a company after all expenses and taxes have been deducted, across all divisions and product lines.

Profit Centers

Divisions or branches within a company that are treated as separate business units, with their own revenues and expenses.

Division Revenues

The total income generated by a specific division or segment of a company from its operational activities.