ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The GDP Deflator is 40.
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One must have an increase income of 30% to have more purchasing power.
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If savings grew by 10%, you were better off spending your money on a durable good in the previous year.
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Nominal GDP will be lower than Real GDP.
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Detailed explanation-1: -The true statement is option d) It refers to an increase in the average level of prices. The inflation over a given period signifies the general increase in the average price level of goods and services.
Detailed explanation-2: -When prices rise by more than 10% per annum, running inflation occurs. Though economists have not suggested a fixed range for measuring running inflation, we may consider the price rise between 10% to 20% per annum as running inflation.
Detailed explanation-3: -Which of the following would be true if the actual rate of inflation were less than the expected rate of inflation? Inflation had been under predicted.
Detailed explanation-4: -A sustained increase in the general price level represents the true definition of inflation and thus option (e) is the correct option.