The GDP deflator is:
A) a measure of the overall change in prices in an economy, using the ratio between real and nominal GDP.
B) one way of summarizing how prices have changed across the entire economy.
C) a weighted average of all of the individual price changes in the economy.
D) All of these statements are correct.

Question

Quizplus · Accepted Answer

The GDP deflator is a measure of the overall change in prices in an economy, using the ratio between real and nominal GDP. It is one way of summarizing how prices have changed across the entire economy. It is also a weighted average of all of the individual price changes in the economy. Therefore, all of the statements are correct.

The GDP Deflator Is