Which index covers all GDP components, including bulldozers and factory buildings?
AGDP deflator
BConsumer index
CProducer index
DCost of living
Answer & Solution
Correct answer: A. GDP deflator
1. It includes goods households never buy.
2. The GDP deflator covers all GDP.
3. Its basket is not fixed.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e, Chapter 8, Inflation (CC BY 4.0)._
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