Table 19-7

-Refer to Table 19-7.Given the information above,calculate the GDP deflator in 2010.

Question

Table 19-7
 
-Refer to Table 19-7.Given the information above,calculate the GDP deflator in 2010.

Quizplus · Accepted Answer

To calculate the GDP deflator, we need to use the formula:

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

To find Real GDP, we use the base year of 2005.

Real GDP in 2010 = (10 x $100) + (20 x $150) = $4,000

Nominal GDP in 2010 = (10 x $120) + (20 x $180) = $6,600

GDP deflator = ( $6,600 / $4,000 ) x 100 = 165

Therefore, the GDP deflator in 2010 is 105.

Table 19-7 -Refer to Table 19-7.Given the Information Above,calculate the GDP Deflator