The price index that refers to all final goods and services produced in a country is the
A)GDP deflator.
B)PPI.
C)CPI.
D)GDP inflator.

Question

Quizplus · Accepted Answer

The GDP deflator is a price index that measures the level of prices of all final goods and services produced within a country. It is calculated by dividing nominal GDP (the value of final goods and services using current prices) by real GDP (the value of final goods and services using constant prices). The PPI (Producer Price Index) measures changes in the prices that domestic producers receive for the goods and services they produce, while the CPI (Consumer Price Index) measures changes in the prices that consumers pay for a basket of goods and services. The GDP inflator is not a commonly used term in economics.

The Price Index That Refers to All Final Goods and Services