GDP deflator is used to account for

Inflation

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Per Capita Income

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Depreciation

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A Inflation
 The GDP deflator is a measure of price inflation. It is calculated by dividing Nominal GDP by Real GDP and then multiplying by 100.

The GDP price deflator addresses impact of inflation by showing the effect of price changes on GDP, first by establishing a base year and, secondly, by comparing current prices to prices in the base year.

Suggest Corrections

Similar questions

Q. GDP deflator is used to account for inflation

Q. With regard to difference between GDP Deflator and CPI, which of the following statements is/are correct?

Answer using the codes given below

1 only
2 only
Neither 1 nor 2
Both 1 and 2

Q. GDP deflator refers to __________.

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

Q. 17. Which of the following statement(s) is/are correct about GDP Deflator?
1. The GDP Deflator measures the ratio of nominal to real GDP.
2. GDP Deflator measures the change in the price level between the base year and the current year.
3. GDP deflator does not include prices of imported goods.
Correct answer code is:

Join BYJU'S Learning Program