Exhibit 18-6
-According to the data in Exhibit 18-6, using 2010 as the base year, the GDP price deflator in 1998 was

Question

Exhibit 18-6 
-According to the data in Exhibit 18-6, using 2010 as the base year, the GDP price deflator in 1998 was

Quizplus · Accepted Answer

To calculate the GDP price deflator for a particular year, we need to divide the nominal GDP of that year by the real GDP of that year (using the base year). 
Nominal GDP for 1998 = $8,450 billion 
Real GDP for 1998 = (3,456/2,700) * $8,450 billion (using 2010 as base year) = $10,820. So, GDP price deflator for 1998 = 8,450/10,820 = 1.28. Therefore, the correct answer is C) 1.28.

Exhibit 18-6 -According to the Data in Exhibit 18-6, Using 2010 as Using