The GDP deflator in year 2 is 105, using year 1 as the base year. This means that, on average, the cost of goods and services is
A) 5% higher in year 1 than in year 2. B) 105% higher in year 1 than in year 2.
C) 105% higher in year 2 than in year 1. D) 5% higher in year 2 than in year 1.
D
Economics
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If a factor of production with a fixed supply is earning $100 in its current use and its next best use would yield earnings of $80, the factor is earning a pure economic rent equal to
A) $0. B) $20. C) $80. D) $180.
Economics
If government taxes a firm which pollutes this will:
a. increase the demand for the good produced. b. decrease the supply of the good produced. c. increase the equilibrium quantity of the good produced in the market. d. decrease the equilibrium price of the good produced in the market. e. all of these.
Economics