The index used to translate nominal GDP into real GDP is the
A) Consumer Price Index
B) Wholesale Price Index
C) GDP Price Index
D) Producer Price Index
E) Manufacturer's Input Price Index

Question

Quizplus · Accepted Answer

The GDP price index, also known as the GDP deflator, is the index used to translate nominal GDP into real GDP. It measures the price level of all goods and services included in GDP, whereas the other options measure specific price levels of either consumer goods (CPI) or wholesale goods (WPI) or producer goods (PPI) or manufacturer inputs (MII), which do not necessarily represent the whole economy.

The Index Used to Translate Nominal GDP into Real GDP