If the GDP deflator is 142,by how much have prices changed since the base year?
A)Prices have increased by 42%.
B)Prices have increased by 142%.
C)Prices have decreased by 4.2%.
D)Prices have increased by 58%.

Question

Quizplus · Accepted Answer

The GDP deflator is a measure of the level of prices of all new, domestically produced, final goods and services in an economy. A GDP deflator of 142 means that the level of prices has increased by 42% since the base year (100 being the base level, so 142 - 100 = 42%).

If the GDP Deflator Is 142,by How Much Have Prices