GDP deflator is
A)a price index that measures the overall level of prices of goods and services included in GDP.
B)a price index that measures the overall level of prices of goods and services included in household baskets.
C)obtained by dividing real GDP over nominal GDP.
D)obtained by measuring the price of goods and services in a base year.

Question

Quizplus · Accepted Answer

GDP deflator is a price index that measures the overall level of prices of goods and services included in GDP. It is calculated by dividing nominal GDP by real GDP, and then multiplying by 100. This measure reflects price changes for all final goods and services produced in an economy.

GDP Deflator Is