Nominal GDP is $10 000 billion in 2008,but real GDP is only $9000 billion.What is the GDP deflator equal to?
A)The GDP deflator is equal to 90.
B)The GDP deflator is equal to 100.
C)The GDP deflator is equal to 111.
D)The GDP deflator is equal to 119.

Question

Quizplus · Accepted Answer

The GDP deflator is calculated as (Nominal GDP/Real GDP) x 100. Therefore, the GDP deflator is (10,000/9,000) x 100 = 111.

Nominal GDP Is $10 000 Billion in 2008,but Real GDP