Under What Circumstances Would the GDP Deflator Be Less Than

question 24

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 cent 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:

Sample Space

The set of all possible outcomes of a probabilistic experiment.

Probabilities

Measures of the likelihood that an event will occur, expressed as numbers between 0 and 1, where 1 denotes certainty.

Outcome

A possible result or effect of an action, situation, or experiment, which can be measured, observed, or evaluated.

Federal Holidays

Days recognized by the federal government of a country as non-working days in commemoration of specified events or celebrations.