Question 1
Economy
GS-III
Economy
15.0 Marks
Question
“The GDP deflator provides a broader measure of inflation than the Consumer Price Index (CPI), but it is not always the most suitable indicator of the cost-of-living pressures faced by households.” Discuss the differences between the GDP deflator and CPI and examine their respective significance for economic policy.
OASpecific Writing Guidance
- Start with a short, relevant and contextual introduction.
- Use clear headings, sub-headings and bullet points.
- Support arguments with facts, examples, reports or relevant data.
- Use diagrams, maps, flowcharts or tables wherever relevant.
- End with a balanced, constructive and forward-looking conclusion.