Asked by Dashiel Gayle Carreon on Apr 24, 2024
Verified
The GDP price index:
A) measures the average price of final goods and services produced in an economy.
B) measures the quality of goods produced in an economy.
C) is derived using the prices of only imported and exported goods and services.
D) is derived using the implicit prices of goods and services produced by the government.
E) measures the value of all intermediate goods and services sold in an economy.
GDP Price Index
A comprehensive inflation measure of all goods and services included in the gross domestic product.
Final Goods
Products that are completed and ready for sale and consumption, as opposed to intermediate goods used in the production of another product.
- Comprehend the theory and computation of Gross Domestic Product (GDP) and its importance in assessing economic activity.
- Grasp the mechanisms and implications of inflation and deflation, as measured by various price indices.
Verified Answer
AJ
Aidar Jantaev7 days ago
Final Answer :
A
Explanation :
The GDP price index (also known as the GDP deflator) measures the average price of all final goods and services produced in an economy. It takes into account both domestic and imported goods and services, and the prices of intermediate goods are excluded to avoid double-counting. This index is used to adjust nominal GDP to real GDP, which provides a more accurate measure of economic growth.
Learning Objectives
- Comprehend the theory and computation of Gross Domestic Product (GDP) and its importance in assessing economic activity.
- Grasp the mechanisms and implications of inflation and deflation, as measured by various price indices.
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