A
Input inflation exceeds output price inflation significantly.
B
Nominal GVA equals real GVA at constant prices.
C
Output price inflation exceeds input inflation.
D
Intermediate inputs are completely untaxed by the government.
Correct answer: (a) Input inflation exceeds output price inflation significantly.
Explanation
Option A is correct because when input costs rise faster than the prices of final outputs, the double deflation method can yield a negative implicit GVA deflator. The other options do not cause this specific anomaly.
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