Table 19-18
A very simple economy produces three goods: cameras, legal services, and books. The quantities produced and their corresponding prices for 2013 and 2018 are shown in the table above.
-Refer to Table 19-18. What is the GDP deflator in 2018 if 2018 is the base year?

Question

Table 19-18
  A very simple economy produces three goods: cameras, legal services, and books. The quantities produced and their corresponding prices for 2013 and 2018 are shown in the table above.
-Refer to Table 19-18. What is the GDP deflator in 2018 if 2018 is the base year?

Quizplus · Accepted Answer

The GDP deflator in the base year is always 100 because it measures the level of prices of all new, domestically produced, final goods and services in an economy, and in the base year, the nominal GDP equals the real GDP.

Table 19-18 a Very Simple Economy Produces Three Goods: Cameras