Table 12-12 -Refer to Table 12-12.Consider the Following Data on Nominal GDP

question 90

Multiple Choice

Table 12-12

-Refer to Table 12-12.Consider the following data on nominal GDP and real GDP (values are in billions of dollars) : The GDP deflator for 2010 equals

• A)94.1.
• B)105.1.
• C)106.2.
• D)108.5.

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Definitions:

Revealed Preference

An economic concept suggesting that the preferences of consumers can be observed by their purchasing habits and choices.

Inflation Level

Inflation level measures the rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Base Year

A specific year chosen as a point of reference or benchmark for financial or economic data comparison over time.

Laspeyres Index

A measure of price inflation that calculates the relative price change of a fixed basket of goods and services at current prices compared to the prices of the same basket in a base period.