If the GDP Deflator Is 100 This Year

question 112

Multiple Choice

If the GDP deflator is 100 this year,

• A)there has been no inflation during the year
• B)the price level is the same as it was in the base year
• C)the price level is one hundred times what it was in the base year
• D)the price level is double what it was in the base year
• E)the inflation rate has been 100 percent per year since the base year

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Definitions:

Technological Progress

The advancement in technology which increases production efficiency and productivity.

Wage Rate

The amount of compensation an individual receives per unit of time for their labor.

Labor Supply

Refers to the total hours that workers are willing and able to work for at a given wage rate in a specific period.

Apple Pickers

Workers engaged in the agricultural practice of harvesting apples from orchards.