If You Have $2 000 and the GDP Deflator Decreases

question 102

Multiple Choice

If you have $2 000 and the GDP deflator decreases from 120 to 110,then

• A)the value of the $1 000 decreases.
• B)the $1 000 will buy 8.3 percent less of the goods and services produced by society.
• C)the $1 000 will buy 8.3 percent more of the goods and services produced by society.
• D)you will be able to less goods,but the real value of those goods will decrease at the same time.