Match List-I with List-II.List-IList-II(A) GDP deflator(I) Includes p…

Match List-I with List-II.

List-I	List-II
(A) GDP deflator	(I) Includes prices of imported goods bought by the representative consumer
(B) Consumer Price Index	(II) Takes into account all goods and services produced in a country, but not imported goods
(C) Wholesale Price Index	(III) Name used in countries like the USA for the index of wholesale prices
(D) Producer Price Index	(IV) Based on the price at which goods are traded in bulk

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → (A)-(II), (B)-(I), (C)-(IV), (D)-(III)

Each price index is built on a different set of goods and prices.

List-I	List-II	Reason
(A) GDP deflator	(II) Takes into account all goods and services produced in a country, but not imported goods	It is nominal GDP divided by real GDP, so it covers all goods produced at home.
(B) Consumer Price Index	(I) Includes prices of imported goods bought by the representative consumer	It prices the consumer’s basket, which may hold imported goods.
(C) Wholesale Price Index	(IV) Based on the price at which goods are traded in bulk	WPI is the index of wholesale prices, and the wholesale price is the price at which goods are traded in bulk.
(D) Producer Price Index	(III) Name used in countries like the USA for the index of wholesale prices	PPI is the same index as WPI under another name.

NCERT (2026-27): “2.4 NOMINAL AND REAL GDP … It is worth noting that many commodities have two sets of prices. One is the retail price which the consumer actually pays. The other is the wholesale price, the price at which goods are traded in bulk. These two may differ in value because of the margin kept by traders. Goods which are traded in bulk (such as raw materials or semi-finished goods) are not purchased by ordinary consumers. Like CPI, the index for wholesale prices is called Wholesale Price Index (WPI). In countries like USA it is referred to as Producer Price Index (PPI). Notice CPI (and analogously WPI) may differ from GDP deflator because
1. The goods purchased by consumers do not represent all the goods which are produced in a country. GDP deflator takes into account all such goods and services.
2. CPI includes prices of goods consumed by the representative consumer, hence it includes prices of imported goods. GDP deflator does not include prices of imported goods.”