_____ is calculated by dividing the nominal GDP in a given year by the real GDP for the same year and multiplying it by 100.

Question

Question

This question was previously asked in

SSC CHSL Tier-I Exam 2022 Official Paper (Held On: 13 March, 2023 Shift 3)

Answer 1

The correct answer is GDP Deflator.

Key Points

The GDP deflator is an economic indicator that measures inflation or deflation in an economy.
It is calculated by dividing the nominal GDP by the real GDP and multiplying the result by 100.
Nominal GDP is the value of all goods and services produced in an economy, unadjusted for inflation.
Real GDP is the value of goods and services produced in an economy, adjusted for inflation.
The GDP deflator helps compare the economic output of different years by adjusting for changes in price levels.

Additional Information

Disposable Income:
- Disposable income refers to the income remaining after deduction of taxes and other mandatory charges.
- It is the amount of money available for spending and saving after all deductions.
- Disposable income does not directly relate to GDP calculations or inflation adjustments.
Real Income:
- Real income refers to the income of individuals or nations, adjusted for inflation.
- It reflects the purchasing power of income, taking into account changes in price levels.
- Real income is not a measure of inflation or deflation, but rather a measure of the true value of income in terms of goods and services.
Per Capita Income:
- Per capita income is a measure of the average income earned per person in a certain area or region.
- It is calculated by dividing the total income of a region by its population.
- Per capita income is not directly related to inflation, deflation, or GDP calculations, but is a useful metric for comparing living standards and economic development between regions.