The GDP deflator is
A) an index that utilizes a consumer's market basket of goods in calculating the inflation rate.
B) the most general indicator of inflation since it measures changes in the prices of all goods and services in the economy.
C) an index used to calculate inflation at the wholesale level.
D) the least used index because it is so costly to calculate.
B
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Suppose the intersection of the IS and LM curves is to the right of the FE line. What would most likely eliminate a disequilibrium among the asset, labor, and goods markets?
A) A rise in the price level, shifting the LM curve up and to the left. B) A fall in the price level, shifting the LM curve down and to the right. C) A rise in the price level, shifting the IS curve up and to the right. D) A fall in the price level, shifting the IS curve down and to the left.
A high-wage country cannot afford free trade with a low-wage country. The high- wage country will either be undersold or its workers will be forced to accept lower living standards
a. True b. False