88)If the value of the GDP deflator in a particular year is 96, then we can conclude that...

a.This particular year must be before the base year.

b.Prices are lower in this particular year compared to the base year.

c.There is a recession.

d.Prices are falling.

89)Assume that the dollar-yen exchange rate is US$1 = 100, the deflator in Japan is 125 and the deflator in the US is 100. The real exchange rate is...

a.225.

b.125.

c.80.

d.75.