Question

The GDP price index equals _____. rev: 04_09_2018 Multiple Choice nominal GDP divided by real GDP gross private domestic investment less the consumption of fixed capital real GDP divided by nominal GDP

Answer 1

Answer: nominal GDP divided by real GDP

Explanation:

The gross domestic price index is also referred to as the gross domestic price deflator and it is used to measure the level of prices new goods and services that are domestically produced in an economy taken into consideration of inflation or deflation.

The gross domestic price index or the gross domestic price deflator is calculated as the nominal GDP divided by the real GDP.