In a particular year,if the real GDP of Country Y is $400,000 and the nominal GDP of Country Y is $450,000,the GDP deflator is ________.
A) 115
B) 102
C) 112.5
D) 0.17

Question

Quizplus · Accepted Answer

The GDP deflator is calculated as (nominal GDP/real GDP)x100.
So, putting the given values in the formula, we get:

GDP deflator = (450,000/400,000) x 100
= 1.125 x 100
= 112.5

Therefore, the GDP deflator is 112.5, which means that the prices of goods and services in Country Y have increased by 12.5% from the base year.

In a Particular Year,if the Real GDP of Country Y