The GDP deflator provides a measure of which of the following?
A) Real GDP divided by the aggregate price level.
B) The ratio of nominal GDP to real GDP.
C) The ratio of GDP to the size of the population.
D) The ratio of GDP to the number of workers employed.
E) The price of a typical consumer's basket of goods.

Question

Quizplus · Accepted Answer

The GDP deflator is a measure of the level of prices of all new, domestically produced, final goods and services in an economy. It is calculated as the ratio of nominal GDP (the value of goods and services at current prices) to real GDP (the value of goods and services at constant prices). This ratio reflects the overall level of prices in the economy, making choice B correct.

The GDP Deflator Provides a Measure of Which of the Following