Answer:
C. The price level has risen.
Explanation:
GDP deflator = (Nominal GDP ÷ Real GDP) × 100
GDP deflator of 2017=(10,000 ÷ 9,500) × 100
= 105.263158
GDP deflator of 2018
= (12,000 ÷ 10,500) × 100
=114.285714
Inflation = (Consumer price index of 2018 - Consumer price index of 2017) ÷ CPI of 2017) × 100
=((114.285714 - 105.263158) ÷ 105.263158) × 100
=8.57142819
=8.57%
From 2017 to 2018 the price level increased by 8.57%
