6 Views

Question : Which of the following is the Gross Domestic Product (GDP) Deflator?

Option 1: The ratio of nominal to real GDP

Option 2: The ratio of nominal to real GNP

Option 3: The ratio of nominal to real CPI

Option 4: The ratio of real to nominal GNP


Team Careers360 4th Jan, 2024
Answer (1)
Team Careers360 14th Jan, 2024

Correct Answer: The ratio of nominal to real GDP


Solution : The correct option is The ratio of nominal to real GDP .

The GDP deflator is a gauge for changes in an economy's total price level. The formula is used to compute GDP Deflator = (Nominal GDP / Real GDP) * 100 ; Nominal GDP is the GDP in current prices, and Real GDP is GDP calculated using prices from the base year. It makes it possible to compare economic production while considering price changes and helps adjust nominal GDP for inflation. It is a comprehensive indicator that tracks changes in the mean prices of all commodities and services produced in an economy.

SSC CGL Complete Guide

Candidates can download this ebook to know all about SSC CGL.

Download EBook

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books