Is It Possible to Have a GDP Deflator of Less

question 18

Multiple Choice

Is it possible to have a GDP deflator of less than 100?

• A) Yes, it would indicate a year when prices were lower than in the base year.
• B) Yes, it would indicate a year when output was lower than in the base year.
• C) No, that is mathematically impossible for the deflator to be less than 100.
• D) Yes, it would indicate a year when prices were lower than in the previous year.

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Definitions:

Superiority Complex

A psychological defense mechanism in which a person's feelings of superiority mask their feelings of inferiority.

Cognitive Simplicity

A cognitive style or way of construing the environment characterized by a relative inability to perceive differences among people.

Conditional Positive Regard

Approval, love, or acceptance granted only when a person expresses desirable behaviors and attitudes.

Detached Personality

Behaviors and attitudes associated with the neurotic trend of moving away from people, such as an intense need for privacy.