Which of the following can be used to measure the change in prices in an economy-
(A) GDP deflator
(B) Industrial Price Index
(C) Rate of inflation
(D) Wholesale price index
Choose the correct answer from the options given below:
Which of the following can be used to measure the change in prices in an economy-
(A) GDP deflator
(B) Industrial Price Index
(C) Rate of inflation
(D) Wholesale price index
Choose the correct answer from the options given below:
Solution
✅ Correct Option: 2
Price changes in an economy are measured by the GDP deflator (ratio of nominal to real GDP), the rate of inflation (percentage change in a price index), and the Wholesale Price Index. 'Industrial Price Index' is not a standard measure of the general price level. Hence (A), (C) and (D) only.
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