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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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