Which of the following statements is/are correct? 1. GDP deflator captures the average price of an unchanging basket of commodities that constitutes the GDP of the country. 2. GDP deflator can be used to measure the real GDP of the economy but not the inf

examrobotsa's picture

Submitted by examrobotsa on

Q: 57 (CDS-I/2024)
Which of the following statements is/are correct?
1. GDP deflator captures the average price of an unchanging basket of commodities that constitutes the GDP of the country.
2. GDP deflator can be used to measure the real GDP of the economy but not the inflation rate.
Select the correct answer using the code given below.

question_subject: 

Economics

question_exam: 

CDS-I

The GDP deflator does not use a fixed basket of goods, and it can be used to measure both real GDP and the inflation rate, making both statements incorrect.