Question:
State the meaning and significance of Gross Domestic Product (GDP) deflator.
State the meaning and significance of Gross Domestic Product (GDP) deflator.
Show Hint
The GDP deflator is more comprehensive than other price indices, such as the Consumer Price Index (CPI), because it includes all goods and services produced within a country, not just those bought by consumers.
Updated On: Jun 19, 2025
Hide Solution
Verified By Collegedunia
Solution and Explanation
The GDP deflator is a measure of the level of prices of all new, domestically produced, final goods and services in an economy. It is used to adjust nominal GDP to real GDP. The deflator reflects the price changes of a basket of goods and services produced in the economy and helps determine the impact of inflation on the economy.
Was this answer helpful?
0
0
Top Questions on National Income Accounting
On the basis of the given data, estimate the value of Net Domestic Product at Factor Cost (NDPFC):
Given Data:
S.No. Items Amount (in ₹ Crore) (i) Household Consumption Expenditure 1,800 (ii) Gross Business Fixed Capital Formation 1,150 (iii) Gross Residential Construction Expenditure 1,020 (iv) Government Final Consumption Expenditure 2,170 (v) Excess of Imports over Exports 720 (vi) Inventory Investments 540 (vii) Gross Public Investments 1,300 (viii) Net Indirect Taxes 240 (ix) Net Factor Income from Abroad -250 (x) Consumption of Fixed Capital 440 - CBSE CLASS XII - 2025
- Economics
- National Income Accounting
- Explain the likely impact of construction of 100 new super specialty hospitals in a nation on Gross Domestic Product (GDP) and welfare in the economy.
- CBSE CLASS XII - 2025
- Economics
- National Income Accounting
- Suppose, there are only three firms in a hypothetical economy, viz. A, B and C. During a given period of time, the following transactions were undertaken by them:
(I) Firm A sold goods worth ₹2,000 to Firm B and ₹1,200 to Firm C.
(II) Firm B sold goods worth ₹1,100 to Firm A and ₹3,500 to Firm C.
(III) Firm C sold to households for final consumption, goods worth ₹5,700.
Estimate the value of Gross Domestic Product at Factor Cost (GDP\(_{PC}\)), assuming the value of Net Indirect Taxes to be ₹240.- CBSE CLASS XII - 2025
- Economics
- National Income Accounting
- State the steps pertaining to the estimation of National Income, under the Expenditure Method.
- CBSE CLASS XII - 2025
- Economics
- National Income Accounting
- Suppose, there are only three firms in a hypothetical economy, viz. A, B, and C. During a given period of time, the following transactions were undertaken by them:
(I) Firm A sold goods worth ₹ 2,000 to Firm B and ₹ 1,200 to Firm C.
(II) Firm B sold goods worth ₹ 1,100 to Firm A and ₹ 3,500 to Firm C.
(III) Firm C sold to households for final consumption goods worth ₹ 5,700.
Estimate the value of Net Domestic Product at Market Price (NDP$_{MP}$) assuming depreciation to be ₹ 120.- CBSE CLASS XII - 2025
- Economics
- National Income Accounting
View More Questions
Questions Asked in CBSE CLASS XII exam
- If $P(A) = \frac{1}{7}$, $P(B) = \frac{5}{7}$ and $P(A \cap B) = \frac{4}{7}$, then $P(A | B)$ is:
- CBSE CLASS XII - 2025
- Probability
- In case of association, abnormal molar mass of solute will:
- CBSE CLASS XII - 2025
- Solutions
- A student tries to tie ropes, parallel to each other from one end of the wall to the other. If one rope is along the vector $3\hat{i} + 15\hat{j} + 6\hat{k}$ and the other is along the vector $2\hat{i} + 10\hat{j} + \lambda \hat{k}$, then the value of $\lambda$ is:
- If \( \int \frac{1}{2x^2} \, dx = k \cdot 2x + C \), then \( k \) is equal to:
- CBSE CLASS XII - 2025
- Integration
- Find the angle at which the given lines are inclined to each other: \[ l_1: \frac{x - 5}{2} = \frac{y + 3}{1} = \frac{z - 1}{-3} \] \[ l_2: \frac{x}{3} = \frac{y - 1}{2} = \frac{z + 5}{-1} \]
View More Questions