The GDP deflator is a measure ofthe overall change in prices in an economy:
A) using the ratio of nominal to real GDP.
B) based on goods and services valued at constant prices.
C) based on price-changes determined when output is held constant.
D) using the ratio of real to nominal GDP.

Question

Quizplus · Accepted Answer

The GDP deflator is calculated by taking the ratio of nominal GDP to real GDP and multiplying by 100. It reflects the change in prices for all goods and services produced in an economy.

The GDP Deflator Is a Measure Ofthe Overall Change in Prices