Question

What is the function of the GDP deflator?

i.It is a measure of inflation which evaluates the entire range of goods and services produced in the economy.

ii.It shows real GDP growth on the basis of current production.

iii.The GDP deflator is in real terms while the CPI is in nominal terms.

iv.None of the above

• A. i only
• B. i and ii only
• C. i and iii only
• D. iv only

Answer 1

Answer:

A. i only