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      Question

      Which of the following provides the measure of the

      general price inflation in an economy?
      A Gross National Product Correct Answer Incorrect Answer
      B Gross Domestic Product Correct Answer Incorrect Answer
      C Gross Value Added Correct Answer Incorrect Answer
      D GDP Deflator Correct Answer Incorrect Answer
      E Gross purchasing parity Correct Answer Incorrect Answer

      Solution

      The GDP deflator, also called implicit price deflator, is a measure of inflation. It 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.

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