In: Economics
Fill in the blank with the correct answer by typing in the box. The GDP deflator is a price index that _______________ all the components of GDP (that is, consumption plus investment plus government plus exports minus imports).
Answer : The answer is "include".
GDP shows the total market value of all domestically produced goods and services in a particular year. In expenditure method consumption, investment, government expenditure, net export (export - import) are the components of GDP. GDP deflator show the changes in price level of all domestically produced goods and services. So, the "GDP deflator is a price index and it include all components of GDP".