An index of the average prices of all goods and services throughout the economy is called
A) the inflation rate.
B) the GDP deflator.
C) the interest rate.
D) the consumer price index.
E) nominal GDP.

Question

Quizplus · Accepted Answer

The GDP deflator measures the price level of all goods and services included in GDP. It is a broader measure of inflation than the consumer price index, which only includes a fixed basket of goods and services typically consumed by households. The inflation rate is a measure of the percentage change in the overall price level over time. The interest rate is the cost of borrowing or the return on saving money. Nominal GDP is the value of all final goods and services produced in an economy in a given period of time, without adjusting for inflation.

An Index of the Average Prices of All Goods and Services