Answer :
The GDP deflator is a price index that includes the following components of GDP c)Consumption, Investment, Government plus Exports minus Imports .
The GDP (gross domestic product) price deflator estimates changes in the prices of all the goods and services produced in an economy. It is sometimes referred to as the GDP deflator or the implicit price deflator.
The overall output of goods and services is measured by the GDP, or gross domestic product. However, the statistic does not take the effects of inflation or rising prices into account when GDP increases and decreases.
This is addressed by the GDP price deflator, which first establishes a base year and then compares current prices to those in the base year to demonstrate the impact of price changes on GDP.
The GDP price deflator, to put it simply, illustrates how much a change in GDP depends on changes in the level of prices.
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