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:

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities they require, aiming to more accurately reflect the actual costs of production.

Customer Cost Analysis

A method for determining the total cost associated with acquiring and servicing a customer, including direct and indirect expenses.

Activity-Based Costing

A strategy for pricing that assigns overhead and indirect costs to products and services according to the specific activities they need.

Complexity-Related

Costs or metrics that arise due to the complexity of operations, products, or services.