The broadest measure of the price level that includes all finalgoods and services isa)...

The broadest measure of the price level that includes all final goods and services is

a) the producer price index.

b) the consumer price index.

c) the wholesale price index.

d) the GDP deflator.

e) house price index.

Solutions

Expert Solution

* D Option is correct

GDP Deflator

GDP DEFLATOR is the ratio of nominal gdp to real gdp. It measures average price changes of all goods and services add up to gdp.GDP DEFLATOR is also known as ImIplicit Price Deflator.It is calcuated by dividing Nominal GDP by Real GDP and then multiplying by 100.

Formula of GDP DEFLATOR-

GDP DEFLATOR = NOMINAL GDP / REAL GDP * 100

GNP DEFLATOR = NOMINAL GNP / REAL GNP * 100

Rahul Sunny answered 1 year ago

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