The GDP deflator is the
A) broadest-based price index available.
B) price index used for the wholesale market.
C) difference between GDP and national income.
D) index used to measure deflation but not inflation.

Question

Quizplus · Accepted Answer

The GDP deflator is a price index that measures the level of prices of all goods and services included in the gross domestic product (GDP). It is considered broad-based because it includes prices of all types of goods and services produced within a country, regardless of who buys them or whether they are traded internationally. It is used to measure inflation or deflation in an economy.

The GDP Deflator Is the