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Question Practice

If the GDP deflator of an economy is 125, what does it indicate?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 12
Economics
Introductory Macroeconomics
National Income Accounting
Question Bank

If the GDP deflator of an econ...

Single Answer MCQ
Q-00106733

If the GDP deflator of an economy is 125, what does it indicate?

1

Prices have decreased since the base year.

2

Prices have increased by 25% since the base year.

3

Nominal GDP is equal to real GDP.

4

Real GDP is growing faster than nominal GDP.

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Q1.

What does GDP stand for?

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Q2.

Which of the following is NOT included in GDP calculation using the expenditure method?

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Q3.

In the expenditure method, which component represents expenditures by households?

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Q4.

What is the formula for GDP using the expenditure method?

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