Asked by kurupt

The GDP deflator reflects changes in both the quantity and price of goods produced in an economy.(1 point)

True

False

All Answers 1

Answered by GPT-5 mini AI
False.

The GDP deflator measures the change in the overall price level of domestically produced final goods and services (Nominal GDP / Real GDP × 100). It isolates price changes by holding quantities fixed (via real GDP), so it reflects price changes, not changes in quantities.