If nominal GDP is 100,000 and real GDP is 80,000,the GDP deflator is 115.

Name: If nominal GDP is 100,000 and real GDP is 80,000,the GDP deflator is 115.
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Question

Quizplus · Accepted Answer

The GDP deflator is the ratio of nominal GDP to real GDP multiplied by 100.

GDP deflator = (Nominal GDP / Real GDP) x 100

Therefore, using the values given:

GDP deflator = (100,000 / 80,000) x 100 = 125

Thus, the statement is false as the actual GDP deflator is 125, not 115.

If Nominal GDP Is 100,000 and Real GDP Is 80,000,the