gdp deflator and inflation rate

Question 1

measures inflation in the prices of goods and services

Answer 1

gdp deflator

Question 2

percentage of increase in the general price of goods

Answer 2

inflation rate

Question 3

to measure inflation rate

Answer 3

consumer price index, wholesale price index, gdp deflator

Question 4

types of inflation

Answer 4

Demand-Pull Effect (demand exceeds
supply)

Cost-push effect (production costs rise)

Built-in Inflation (Future expactations of
inflation influence wage and prices)

Question 5

Both CPI (Consumer Price Index) and the GDP deflator are
used to measure inflation, but they differ in their scope and
what they measure. The CPI measures the price change of a
basket of goods and services commonly purchased by
consumers, while the GDP deflator reflects the price
changes of all goods and services produced domestically.