The ratio of nominal economic output to real economic output multiplied by 100 is the:
A) consumer price index.
B) GDP deflator.
C) producer price index.
D) exchange rate.

Question

Quizplus · Accepted Answer

The ratio of nominal economic output to real economic output multiplied by 100 is known as the GDP deflator. It measures the level of inflation, as it reflects the change in prices of all goods and services included in the gross domestic product (GDP) over a given period of time. The consumer price index (CPI) reflects the change in the prices of a basket of goods and services purchased by consumers, while the producer price index (PPI) measures the changes in the selling prices received by domestic producers for their goods and services over time. The exchange rate reflects the value of one currency in relation to another currency.

The Ratio of Nominal Economic Output to Real Economic Output