Which index is known as the "GDP Deflator" in its calculation?

Correct Answer: Implicit Price Deflator

Subject: economics

• Consumer Price Index (CPI)
• Implicit Price Deflator
• Wholesale Price Index (WPI)
• Gender Inequality Index

Explanation: • <b>Key Fact</b> The GDP deflator is also known as the implicit price deflator. • <b>Supporting Detail</b> It is an indicator of inflation that helps measure the actual increase in GDP. • <b>Related Concept</b> It covers all goods and services, unlike CPI and WPI which have fixed baskets. • <b>Why wrong options are wrong</b> WPI is used as a GDP deflator proxy sometimes in India, but the exact synonym is Implicit Price Deflator. • <b>Exam Trick</b> Deflator = Implicit Price Deflator. • <b>Additional Info</b> Formula: (Nominal GDP / Real GDP) x 100.

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