The GDP deflator is an index that tracks the:
A)price that businesses pay over time for the inputs used in the production process.
B)average price that consumers pay over time for a representative basket of goods and services.
C)highest prices consumers pay over time for imported goods and services.
D)price of all goods and services produced domestically.

Question

Quizplus · Accepted Answer

The GDP deflator is an index that measures the price level of all goods and services produced domestically, which includes both consumer goods and capital goods. It is a useful tool for understanding inflation and the overall growth of an economy.

The GDP Deflator Is an Index That Tracks The