3
QuizMultiple Choice

GDP and Changes in the Price Level

Question 3 • VT-GA-EOC-Personal Finance & Economics A ULHS

What is the implicit GDP price deflator?

Answer
A
a price index that measures price changes in GDP
B
a measure designed to record the effects of inflation on consumers
C
a price index that records the prices businesses receive
D
a method used to calculate current GDP

Explanation

The implicit GDP price deflator is a price index that measures changes in the prices of goods and services included in GDP. It compares nominal GDP with real GDP, so it reflects price changes across the economy rather than only prices paid by consumers. Therefore, the correct choice is “a price index that measures price changes in GDP.”

AI-written and checked against the verified answer.

Previous
Next