The GDP deflator measures the
Correct answer: A. Average price of goods and services produced domestically
- A. Average price of goods and services produced domestically
- B. Average price of imported consumer goods only
- C. Average price of shares traded in an economy
- D. Average quantity of goods exported by a country
Explanation
The GDP deflator compares nominal GDP with real GDP and reflects prices of domestically produced final goods and services. It differs from the consumer price index because the CPI focuses on a consumer basket, including imports.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
Practise Macroeconomics
1,499 free Macroeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Macroeconomics questions
During the contraction phase of a business cycle, which combination is most likely?
A current account deficit in a country's balance of payments means that
In Pakistan, which institution is primarily responsible for conducting monetary policy?
An increase in government spending, with taxes unchanged, directly increases aggregate demand through
Which example is an automatic stabilizer in a modern economy?
Crowding out occurs when expansionary fiscal policy causes