1. The GDP deflator is used to calculate the official estimate of inflation that

Question

1. The GDP deflator is used to calculate the official estimate of inflation that is used to index Social Security payments (T/F)

2. In the circular-flow diagram, households:

a. supply services.

b. supply goods.

c.buy resources.

d. supply resources.

3. Between 2000 and 2013, the nominal GDP of Venezuela grew by 29% annually because prices in Venezuela decreased rapidly during the period. (T/F)

4. During Brazil's hyperinflation of the 1990s the economy lost real resources when the transportation sector grew very large to cope with the consequences of the high rate of inflation (T/F)

Explanation / Answer

1) False, The GDP deflator is used to measure price level change extent or either inflation which includes government services and consumer services. GDP deflator measures changes in GDP of the year based on price level change.

2) c) Buy resources. They consume the goods offered by other firms

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.