Question

In: Economics

The GDP deflator is based on the weighted average price of which components of GDP: Group...

The GDP deflator is based on the weighted average price of which components of GDP:
Group of answer choices

A. Consumption, Investment, and Government

B. Consumption plus Investment but not Exports

C. Consumption, Investment plus Exports minus Imports

D. Consumption, Investment, Government plus Exports minus Imports

Solutions

Expert Solution

And: D. Consumption, Investment, Government plus Exports minus Imports

The GDP deflator is a weighted average of the prices of all final goods and services produced in the economy.

The GDP deflator includes government goods, investment goods, and exports rather than the traditional consumer-oriented basket of goods.


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