GDP Deflator in India Increased to 119.50 Index Points in 2-16 from 117.80 Index point in 2015. Consider the following statemenst regarding the "GDP deflators" :
1) GDP deflator in India is reported by the Ministry of statistics and programme implementation (MOSPI)
2) GDP Deflator is a comprehensive measure of inflation
3) The GDP Deflator is ased on a fixed basket of goods and services.
Select the right statements
GDP Deflator in India Increased to 119.50 Index Points in 2-16 from 117.80 Index point in 2015. Consider the following statemenst regarding the "GDP deflators" :
1) GDP deflator in India is reported by the Ministry of statistics and programme implementation (MOSPI)
2) GDP Deflator is a comprehensive measure of inflation
3) The GDP Deflator is ased on a fixed basket of goods and services.
Select the right statements
The correct option is A Only 1 & 2
Unlike other price indexes, the GDP deflator is not based on a fixed basket of goods and services. It covers the whole economy.
Extra Information: The GDP deflator, also called implicit price deflator, is a measure of inflation. Simply put, it is the ratio of the value of goods and services an economy produces in a particular year at current prices to that at prices prevailing during any other reference (base) year. This ratio basically shows to what extent an increase in GDP or gross value added (GVA) in an economy has happened on account of higher prices, rather than increased output. Since the deflator covers the entire range of goods and services produced in the economy — as against the limited commodity baskets for the wholesale or consumer price indices — it is seen as a more comprehensive measure of inflation.
Only 1 & 2
Unlike other price indexes, the GDP deflator is not based on a fixed basket of goods and services. It covers the whole economy.
Extra Information: The GDP deflator, also called implicit price deflator, is a measure of inflation. Simply put, it is the ratio of the value of goods and services an economy produces in a particular year at current prices to that at prices prevailing during any other reference (base) year. This ratio basically shows to what extent an increase in GDP or gross value added (GVA) in an economy has happened on account of higher prices, rather than increased output. Since the deflator covers the entire range of goods and services produced in the economy — as against the limited commodity baskets for the wholesale or consumer price indices — it is seen as a more comprehensive measure of inflation.
