Which measure of prices includes all of the final goods and services in a nation's output?
A) consumer price index
B) the GDP deflator
C) producer price index
D) the exchange rate

Question

Quizplus · Accepted Answer

The GDP deflator is a measure of overall price level that includes all of the final goods and services produced in a nation's economy, regardless of whether they are consumed by households or used for investment or government spending. The consumer price index only measures the prices of goods and services purchased by households, and the producer price index only measures the prices of goods and services at the wholesale level. The exchange rate is the value of one currency in terms of another and is not directly related to measuring prices in a single nation's economy.

Which Measure of Prices Includes All of the Final Goods