Option B: Captures price changes of all goods and services in GDP. GDP Deflator reflects price changes in all goods & services in GDP.

Option A: Is a fixed basket index like CPI

Option C: Is calculated monthly

Option D: Excludes services sector

The GDP Deflator - Inflation (General Studies) Solved Question

Solved UPSC CDS/OTA Question

A solved UPSC CDS/OTA PYQ - decoded step-by-step.

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Q · InflationMedium · 45s

The GDP Deflator:

TopicInflation

Question Typemultiple choice

DifficultyMedium

Marking+1 / −0.33

Test Duration30 min

Step-by-Step Solution

Every step explained - no skipped algebra.

GDP Deflator reflects price changes in all goods & services in GDP.

Final Answer: Option B - Captures price changes of all goods and services in GDP