Nominal GDP is $1,800 and real GDP is $1,600. The GDP deflator is
A)112.5.
B)88.8.
C)8.88.
D)11.25.
E)1125.

Name: Nominal GDP is $1,800 and real GDP is $1,600. The GDP deflator is A)112.5. B)88.8. C)8.88. D)11.25. E)1125.
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Question

Quizplus · Accepted Answer

The GDP deflator measures the inflation rate in the economy and is calculated as (Nominal GDP/Real GDP) x 100.

Using the given values, we can calculate the GDP deflator as:

(Nominal GDP/Real GDP) x 100 = (1,800/1,600) x 100 = 112.5

Therefore, the answer is A, 112.5.

Nominal GDP Is $1,800 and Real GDP Is $1,600