Q- With regard to difference between GDP Deflator and CPI- which of the following statements is-are correct-1- GDP Deflator takes into account all goods and services produced in a country whereas CPI doesn-t-2- GDP deflator takes into account the prices of imported goods whereas CPI doesn-tAnswer using the codes given below

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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

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2 only

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Both 1 and 2

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Neither 1 nor 2

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Solution

The correct option is A
1 only
Explanation:

Statement 1 is correct: Whereas GDP deflator takes into account all such goods and services produced in a country. The goods purchased by consumers and represented on CPI do not represent all the goods which are produced in a country.

Statement 2 is incorrect: Price of imported goods are not included in the calculation of GDP deflator whereas CPI includes prices of imported goods.

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Similar questions

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:

Q. GDP deflator do not reflect the prices of all domestically produced goods and services in the economy

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

49. Match the following indices with their publishers:

Index

(i) WPI

(ii) CPI combined

(iii) GDP Deflator

(iv) CPI-Industrial Workers

Published by

1. Labour Bureau

2. Office of Economic Advisor

3. CSO

Select the correct answer using the code given below:

Q. GDP deflator is used to account for

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

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

Answer using the codes given below