Multiple Choice
Suppose the GDP deflator is currently 115 while the equilibrium GDP deflator is 111. In this instance:
A) an excess supply of goods and services will cause the deflator to increase.
B) an excess supply of goods and services will cause the deflator to decrease.
C) an excess demand for goods and services will cause the deflator to decrease.
D) an excess demand for goods and services will cause the deflator to increase.
Correct Answer:
Verified
Correct Answer:
Verified
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