In the base year,the GDP deflator is always
A)-1.
B)0.
C)1.
D)100.

Name: In the base year,the GDP deflator is always A)-1. B)0. C)1. D)100.
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Question

Quizplus · Accepted Answer

The GDP deflator is a measure that reflects the changes in price level of goods and services produced in a country. It is calculated by dividing the nominal GDP by the real GDP and then multiplying by 100. In the base year, the nominal and real GDP values are the same, and therefore, the GDP deflator is equal to 100. So, the correct answer is D.

In the Base Year,the GDP Deflator Is Always