If nominal GDP in 2009 equals $14 trillion and real GDP in 2009 equals $11 trillion, what is the value of the GDP deflator?
A)0.79
B)1.03
C)1.27
D)1.30

Question

Quizplus · Accepted Answer

The GDP deflator is calculated by dividing nominal GDP by real GDP and multiplying by 100. In this case, the GDP deflator is 14 trillion / 11 trillion * 100 = 127.3, which is closest to choice A, 0.79.

If Nominal GDP in 2009 Equals $14 Trillion and Real