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

Question

Quizplus · Accepted Answer

The GDP deflator is a measure of inflation that is calculated by dividing nominal GDP by real GDP and multiplying by 100. It provides a ratio of the price levels of all goods and services included in GDP in the current year to their price levels in a base year. Therefore, it represents the ratio of nominal GDP to real GDP.

The GDP Deflator Provides a Measure of Which of the Following