Table 12-18
$$\begin{array} { | l | c | r | r | r | }
\hline & { \mathbf { 2 0 0 8 } } & & { \mathbf { 2 0 1 3 } } & \
\hline \text { Product } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \
\hline \text { Camera } & 100 & \$ 10 & 120 & \$ 12 \
\hline \text { Legal services } & 50 & 15 & 45 & 20 \
\hline \text { Books } & 200 & 40 & 210 & 45 \
\hline
\end{array}$$
A very simple economy produces three goods: cameras, legal services, and books.The quantities produced and their corresponding prices for 2008 and 2013 are shown in the table above.
-Refer to Table 12-18.What is the GDP deflator in 2008 if 2013 is the base year?

Question

Table 12-18
 $$\begin{array} { | l | c | r | r | r | } 
\hline &  { \mathbf { 2 0 0 8 } } & & { \mathbf { 2 0 1 3 } } & \
\hline \text { Product } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \
\hline \text { Camera } & 100 & \$ 10 & 120 & \$ 12 \
\hline \text { Legal services } & 50 & 15 & 45 & 20 \
\hline \text { Books } & 200 & 40 & 210 & 45 \
\hline
\end{array}$$ 
A very simple economy produces three goods: cameras, legal services, and books.The quantities produced and their corresponding prices for 2008 and 2013 are shown in the table above.
-Refer to Table 12-18.What is the GDP deflator in 2008 if 2013 is the base year?

Quizplus · Accepted Answer

The GDP deflator is calculated as (Nominal GDP / Real GDP) * 100. For 2008, using 2013 as the base year, the nominal GDP is calculated using 2008 quantities and prices, while the real GDP uses 2008 quantities and 2013 prices. The deflator is (Nominal GDP 2008 / Real GDP 2008) * 100 = 87.

Table 12-18 A Very Simple Economy Produces Three Goods: Cameras, Legal Services