The GDP deflator is a measure of the
A)total production of the economy adjusted for inflation.
B)total production of the economy unadjusted for inflation.
C)average level of prices of final goods and services in the economy.
D)average level of prices of intermediate goods and services in the economy.

Question

Quizplus · Accepted Answer

The GDP deflator is a measure of the average level of prices of all final goods and services produced within an economy. It takes into account the prices of all goods and services, including those sold to intermediate producers. It is used as a measure of inflation, and incorporates changes in prices of all goods, not just a basket of select goods.

The GDP Deflator Is a Measure of the