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

Inflation Question 15 – UPSC CDS/OTA

Solved UPSC CDS/OTA Question

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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