Is it possible to have a GDP deflator of less than 100?

Is it possible to have a GDP deflator of less than 100? 




A. Yes, it would indicate a year when prices were lower than in the base year.

B. Yes, it would indicate a year when output was lower than in the base year.

C. No, that is mathematically impossible.

D. Yes, it would indicate a year when prices were lower than in the previous year.





Answer: A


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