Question

Alternative price indexes Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator. The GDP deflator for this year is calculated by dividing the________using the________by the _________ using the ______by mulyiplying by 100.However the GDP deflator reflects only the prices of all goods and services_______

Answer 1

GDP Deflator is calculated by

A) Dividing the Nominal GDP by

B) The real GDP and Multiplying by 100

C) However, the GDP deflator reflects only the prices of all goods and services produced locally.

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