Most economists consider the GDP deflator as ________ of inflationary pressures in the economy.
A) the least accurate measure
B) an overvalued measure
C) only valid as a wholesale price measure
D) the best overall indicator

Question

Quizplus · Accepted Answer

The GDP deflator is a broad measure that reflects changes in the prices of all goods and services produced in the economy, making it a comprehensive measure of inflation. It is also considered more accurate than other measures like the Consumer Price Index (CPI), which only measures changes in prices of a fixed basket of goods and services. Therefore, most economists consider the GDP deflator as the best overall indicator of inflationary pressures in the economy.

Most Economists Consider the GDP Deflator as ________ of Inflationary