The GDP deflator is:
A) measured using the ratio between real and nominal GDP.
B) one way of summarizing how prices have changed across the entire economy.
C) a weighted average of all the individual price changes in the economy.
D) All of these statements are true.

Question

Quizplus · Accepted Answer

All of the statements are true. The GDP deflator is a measure of the overall price level in an economy, calculated as the ratio of nominal to real GDP. It takes into account changes in prices across all sectors of the economy and calculates a weighted average of all the individual price changes. Therefore, all the options provided in the question are correct.

The GDP Deflator Is