When demand declined in the Great Depression of 1929-1933, the GDP deflator:
A) increased by 15%.
B) increased by 26%.
C) decreased by 15%.
D) decreased by 26%.

Question

Quizplus · Accepted Answer

During the Great Depression, the GDP deflator, which measures the level of prices of all new, domestically produced, final goods and services in an economy, decreased significantly. The deflationary period saw a decrease of about 26% in the GDP deflator.

When Demand Declined in the Great Depression of 1929-1933, the GDP