Table 12-19
$\begin{array}{|l|c|r|}
\hline & \mathbf{2 0 1 7} & {\mathbf{2 0 1 8}} \
\hline \text { Nominal GDP } & \$ 10,000 & \$ 12,000 \
\hline \text { Real GDP } & 9,500 & 10,500 \
\hline
\end{array}$
-Refer to Table 12-19.Given the information above,calculate the GDP deflator in 2018.

Question

Table 12-19
 $\begin{array}{|l|c|r|}
\hline & \mathbf{2 0 1 7} & {\mathbf{2 0 1 8}} \
\hline \text { Nominal GDP } & \$ 10,000 & \$ 12,000 \
\hline \text { Real GDP } & 9,500 & 10,500 \
\hline
\end{array}$
-Refer to Table 12-19.Given the information above,calculate the GDP deflator in 2018.

Quizplus · Accepted Answer

The GDP deflator formula is:

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

Substituting the given values in the above formula,

GDP deflator in 2018 = (12000 / 10500) x 100 = 114.28 (approximately)

Therefore, the best choice is A) 114.

Table 12-19 -Refer to Table 12-19