The GDP deflator is a:
A) Laspeyres price index.
B) Paasche price index.
C) Laspeyres quantity index.
D) Paasche quantity index.

Name: The GDP deflator is a: A) Laspeyres price index. B) Paasche price index. C) Laspeyres quantity index. D) Paasche quantity index.
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Question

Quizplus · Accepted Answer

The GDP deflator is a Paasche price index because it uses the current year's quantities as weights, allowing it to reflect the prices of goods and services in the current year's consumption basket.

The GDP Deflator Is A