Use the following to answer questions: Table: iPhones $$\begin{array} { l c c }
\hline \text { Year } & \text { Quantity produced } & \text { Price } \
\hline 2000 & 100 & \$ 100 \
2010 & 90 & 110 \
\hline
\end{array}$$
-(Table: iPhones) This table shows data for a country producing only iPhones. If 2000 prices are used in the calculation of real GDP, the GDP deflator for 2010 is:
A)10.
B)90.9.
C)110.
D)900.

Question

Use the following to answer questions: Table: iPhones $$\begin{array} { l c c } 
\hline \text { Year } & \text { Quantity produced } & \text { Price } \
\hline 2000 & 100 & \$ 100 \
2010 & 90 & 110 \
\hline
\end{array}$$
-(Table: iPhones) This table shows data for a country producing only iPhones. If 2000 prices are used in the calculation of real GDP, the GDP deflator for 2010 is:
A)10.
B)90.9.
C)110.
D)900.

Quizplus · Accepted Answer

The GDP deflator is calculated as (Nominal GDP / Real GDP) * 100. For 2010, Nominal GDP = 90 * $110 = $9900, and Real GDP (using 2000 prices) = 90 * $100 = $9000. Thus, GDP deflator = ($9900 / $9000) * 100 = 110.

Use the Following to Answer Questions: Table: IPhones -(Table: IPhones) This Table Shows Data for a Country Producing