Answer to Question #105188 in Macroeconomics for Afrasiyab Khan

Question

Suppose 2010 is the base year. what is the GDP deflator for 2010?

Answer 1

Gross domestic product deflator (GDP deflator) - a price index created to measure the general level of prices for goods and services (consumer basket) for a certain period in the economy. In this case, the GDP deflator for 2010 shows the change in prices for goods and services (consumer basket) that occurred in 2010.