If the GDP Deflator Is 142,by How Much Have Prices

question 52

Multiple Choice

If the GDP deflator is 142,by how much have prices changed since the base year?

• A) Prices have increased by 42 per cent.
• B) Prices have increased by 142 per cent.
• C) Prices have decreased by 4.2 per cent.
• D) Prices have increased by 58 per cent.

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Definitions:

Economic Growth

An increase in the amount of goods and services produced per head of the population over a period of time, reflecting a growing economy.

Outward Shift

In economics, refers to the movement of a curve away from the origin on a graph, typically illustrating growth or increase in factors like production possibility frontier or supply curve.

Technology

The application of scientific knowledge for practical purposes, especially in industry and the development of new products or processes.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs.