When the GDP deflator rises,

A) GDP definitely rises.
B) GDP definitely remains the same.
C) GDP definitely falls.
D) the economy is experiencing inflation.

GDP Deflator

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

Inflation

The acceleration in the general cost levels of goods and services, causing a decline in the ability to acquire.