Nominal GDP is adjusted for price changes using
A) the Consumer Price Index (CPI).
B) the Producer Price Index (PPI).
C) the GDP price index.
D) exchange rates.

Question

Quizplus · Accepted Answer

Nominal GDP is adjusted for price changes using the GDP price index, also known as the Gross Domestic Product Price Deflator. This is a measure of the change in prices of all goods and services produced in an economy, and is often used as a measure of inflation. The CPI and PPI are also measures of price changes, but they are not used to adjust nominal GDP. Exchange rates are used to convert the value of one currency into another and are not directly related to adjusting GDP for price changes.

Nominal GDP Is Adjusted for Price Changes Using