With reference to GDP deflator a measure of general price inflation consider the following sta...........

Economic Affairs Inflation

With reference to GDP deflator, a measure of general price inflation, consider the following statements:

1. GDP deflator is more comprehensive measure of inflation than consumer price index and wholesale price index.

2. Unlike WPI and CPI, monthly change in inflation cannot be tracked using GDP deflator.

3. A GDP deflator value of zero implies no change in price levels from the base year.

Which of the statements given above is/are correct?

1 only

1 and 2 only

2 and 3 only

1, 2, and 3

Only statements 1&2 are correct.

Using the GDP price deflator helps economists compare the levels of real economic activity from one year to another. The GDP price deflator is a more comprehensive inflation measure than the Consumer Price Index (CPI) index because it isn't based on a fixed basket of goods.
The GDP price deflator measures the changes in prices for all the goods and services produced in an economy.
The GDP deflator, also known as the implicit price deflator, is the ratio of the value of goods and services an economy produces in a particular year at current prices to that of prices that prevailed during the base year. Therefore, Unlike WPI and CPI, monthly change in inflation cannot be tracked using GDP deflator.
Like the consumer price index (CPI), the GDP deflator is a measure of price inflation/deflation with respect to a specific base year; the GDP deflator of the base year itself is equal to 100.

Hence option 2nd is correct.