If the GDP deflator in 2012 has a value of 98.0, then
A. prices have increased 9.8 percent between the base year and 2012.
B. prices have decreased 2 percent between the base year and 2012.
C. the inflation rate in 2012 is 2 percent.
D. the inflation rate in 2012 is -2 percent.
Answer: B. prices have decreased 2 percent between the base year and 2012.