Table 4.15
-Refer to Table 4.15.Consider the data shown above on nominal GDP and real GDP (values are in billions of dollars).The GDP deflator for 2016 equals

Question

Table 4.15 
-Refer to Table 4.15.Consider the data shown above on nominal GDP and real GDP (values are in billions of dollars).The GDP deflator for 2016 equals

Quizplus · Accepted Answer

The GDP deflator for a given year is calculated by dividing the nominal GDP by the real GDP and multiplying by 100. 
For 2016, nominal GDP is $18,842.9 billion and real GDP is $17,723.6 billion. 
Therefore, the GDP deflator for 2016 is:

GDP deflator = (nominal GDP / real GDP) x 100 
GDP deflator = (18,842.9 / 17,723.6) x 100 
GDP deflator = 106.2

So, the correct answer is C.

Table 4.15 -Refer to Table 4.15.Consider the Data Shown Above on Nominal