12
QuizMultiple Choice

GDP and Changes in the Price Level

Question 12 • VT-GA-EOC-Personal Finance & Economics A ULHS

An index of average level of prices for all goods and services in the economy is the

Answer
A
implicit GDP price deflator.
B
consumer price index.
C
producer price index.
D
current GDP.

Explanation

The implicit GDP price deflator measures the average price level of all final goods and services produced in the economy. The consumer price index focuses on consumer purchases, while the producer price index tracks prices received by producers, so neither covers the economy-wide measure described. The correct choice is the implicit GDP price deflator.

AI-written and checked against the verified answer.

Previous
Next