Which of the following measures the average level of prices of all final goods and services produced in the economy?
A)The GDP deflator
B)Nominal GDP
C)Real GDP
D)The Consumer Price Index (CPI)
E)Purchasing power parity

Question

​Which of the following measures the average level of prices of all final goods and services produced in the economy?
A)The GDP deflator
B)Nominal GDP
C)Real GDP
D)The Consumer Price Index (CPI)
E)Purchasing power parity

Quizplus · Accepted Answer

The GDP deflator measures the average level of prices of all final goods and services produced in the economy. Nominal GDP measures the total production of goods and services in the economy at current market prices, while real GDP adjusts for inflation to give a more accurate measure of economic output. The CPI measures changes in the prices of a fixed basket of goods and services purchased by consumers, while purchasing power parity is a measure of the relative purchasing power of currencies in different countries.

​Which of the Following Measures the Average Level of Prices

Which of the Following Measures the Average Level of Prices