By comparing the value of marginal product with the marginal cost per input, a firm can find the:

Refer to Figure 24-4. Given the economy is at point A in year 1, what is the inflation rate between year 1 and year 2?

A) 0.9% B) 1.8% C) 2.7% D) 3.0%

If national income accountants fail to make an adequate adjustment for increases in the quality of goods and services over time,

a. real GDP will overstate the growth rate of real output. b. the GDP deflator will underestimate inflation. c. the GDP deflator will overestimate inflation. d. real GDP will overstate the growth of real output, and the GDP deflator will understate inflation.