In 1984,the base year,GDP was 3000.In 1988 the GDP deflator was 98.We may conclude that

A) there was some inflation between 1984 and 1988.
B) there was some deflation between 1984 and 1988.
C) real GDP declined between 1984 and 1988.
D) GDP declined between 1984 and 1988.

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy, used to convert nominal GDP into real GDP.

Deflation

A decrease in the general price level of goods and services, often indicating reduced consumer demand or excess supply.

Inflation

A general increase in prices and fall in the purchasing value of money over time.