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It is the ratio of the value of all goods and services an economy produces in a particular year at current prices to that of prices that prevailed during the base year. It serves a specific purpose of giving the real gross domestic product from the nominal gross domestic product by adjusting the price effect. In economy, this concept is called as:
- a)Gross domestic product deflator
- b)Base effect
- c)Core inflation
- d)Consumer price index
Correct answer is option 'A'. Can you explain this answer?
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It is the ratio of the value of all goods and services an economy pro...
GDP deflator is a more comprehensive measure of inflation. 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. This ratio helps show the extent to which the increase in gross domestic product has happened on account of higher prices rather than increase in output. The deflator is more comprehensive measure of inflation because it covers the entire range of goods and services produced in the economy.
Base effect refers to the impact of the rise in price level in the previous year over the corresponding rise in price levels in the current year.
Core inflation excludes food and fuel items from headline inflation. Since the prices of fuel and food items tend to fluctuate and create ‘noise’ in inflation computation, core inflation is less volatile than headline inflation.
A consumer price index (CPI) measures changes in the general level of prices of goods and services that households acquire for the purpose of consumption. However, since CPI is based only on a basket of select goods and is calculated on prices included in it, it does not capture inflation across the economy as a whole.
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It is the ratio of the value of all goods and services an economy produces in a particular year at current prices to that of prices that prevailed during the base year. It serves a specific purpose of giving the real gross domestic product from the nominal gross domestic product by adjusting the price effect. In economy, this concept is called as:a)Gross domestic product deflatorb)Base effectc)Core inflationd)Consumer price indexCorrect answer is option 'A'. Can you explain this answer?
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It is the ratio of the value of all goods and services an economy produces in a particular year at current prices to that of prices that prevailed during the base year. It serves a specific purpose of giving the real gross domestic product from the nominal gross domestic product by adjusting the price effect. In economy, this concept is called as:a)Gross domestic product deflatorb)Base effectc)Core inflationd)Consumer price indexCorrect answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about It is the ratio of the value of all goods and services an economy produces in a particular year at current prices to that of prices that prevailed during the base year. It serves a specific purpose of giving the real gross domestic product from the nominal gross domestic product by adjusting the price effect. In economy, this concept is called as:a)Gross domestic product deflatorb)Base effectc)Core inflationd)Consumer price indexCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for It is the ratio of the value of all goods and services an economy produces in a particular year at current prices to that of prices that prevailed during the base year. It serves a specific purpose of giving the real gross domestic product from the nominal gross domestic product by adjusting the price effect. In economy, this concept is called as:a)Gross domestic product deflatorb)Base effectc)Core inflationd)Consumer price indexCorrect answer is option 'A'. Can you explain this answer?.
It is the ratio of the value of all goods and services an economy produces in a particular year at current prices to that of prices that prevailed during the base year. It serves a specific purpose of giving the real gross domestic product from the nominal gross domestic product by adjusting the price effect. In economy, this concept is called as:a)Gross domestic product deflatorb)Base effectc)Core inflationd)Consumer price indexCorrect answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about It is the ratio of the value of all goods and services an economy produces in a particular year at current prices to that of prices that prevailed during the base year. It serves a specific purpose of giving the real gross domestic product from the nominal gross domestic product by adjusting the price effect. In economy, this concept is called as:a)Gross domestic product deflatorb)Base effectc)Core inflationd)Consumer price indexCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for It is the ratio of the value of all goods and services an economy produces in a particular year at current prices to that of prices that prevailed during the base year. It serves a specific purpose of giving the real gross domestic product from the nominal gross domestic product by adjusting the price effect. In economy, this concept is called as:a)Gross domestic product deflatorb)Base effectc)Core inflationd)Consumer price indexCorrect answer is option 'A'. Can you explain this answer?.
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