Table 12-14
$\begin{array}{|c|c|c|}
\hline \text { Year } & \begin{array}{c}
\text { Nominal } \
\text { GDP }
\end{array} & \text { Real GDP } \
\hline 2017 & 14,078 & 13,254 \
\hline 2018 & 14,441 & 13,312 \
\hline
\end{array}$
-Refer to Table 12-14.Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The GDP deflator for 2018 equals

Question

Table 12-14
 $\begin{array}{|c|c|c|}
\hline \text { Year } & \begin{array}{c}
\text { Nominal } \
\text { GDP }
\end{array} & \text { Real GDP } \
\hline 2017 & 14,078 & 13,254 \
\hline 2018 & 14,441 & 13,312 \
\hline
\end{array}$
-Refer to Table 12-14.Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The GDP deflator for 2018 equals

Quizplus · Accepted Answer

The GDP deflator is defined as the ratio of nominal GDP to real GDP multiplied by 100:

$$GDP\ deflator=\frac{Nominal\ GDP}{Real\ GDP}	imes 100$$

For 2017:

$$GDP\ deflator=\frac{14,078}{13,254}	imes 100=106$$

For 2018:

$$GDP\ deflator=\frac{14,441}{13,312}	imes 100=108.5$$

Therefore, the answer is (C) 108.5.

Table 12-14 -Refer to Table 12-14