Consider the following statements regarding GDP deflator 1 It is the ratio of real GDP divided by no...........

Economic Affairs Inflation

Consider the following statements regarding GDP deflator:

1 . It is the ratio of real GDP divided by nominal GDP

2. The GDP deflator also includes the prices of investment goods, government services and exports, and the price of imports.

Which of the statements given above is/are correct?

I only

2 only

Both 1 and 2

Neither 1 nor 2

छोटे Courses बड़े Results

Master Inflation

Prepare through Micro-courses

Try Now

Explanation:

The gross domestic product (GDP) deflator is a measure of general price inflation. it is calculated by dividing nominal GDP by real GDP and then multiplying by 100 .since gross domestic product is an aggregate measure of production, it measure the sum of all final uses of goods and services.(less imports)