The country described in the table below produces and consumes only three goods: energy drinks, pizza, and t-shirts. The quantity produced and price of each good in 2016 and 2017 are provided.

-Refer to the above table.Assuming that 2016 is the base year,what was the GDP deflator in 2016?
A) 95.8
B) 100
C) 102.3
D) 107.6

Question

The country described in the table below produces and consumes only three goods: energy drinks, pizza, and t-shirts. The quantity produced and price of each good in 2016 and 2017 are provided.
 
-Refer to the above table.Assuming that 2016 is the base year,what was the GDP deflator in 2016?
A) 95.8 
B) 100 
C) 102.3 
D) 107.6

Quizplus · Accepted Answer

The formula for calculating GDP deflator is (Nominal GDP/Real GDP) x 100. Since 2016 is the base year, the Real GDP is always equal to the Nominal GDP in that year. Therefore, the GDP deflator for 2016 is always 100.

The Country Described in the Table Below Produces and Consumes