Table 4.21
-Refer to Table 4.21.Given the information above, calculate the GDP deflator in 2016.

Question

Table 4.21 
-Refer to Table 4.21.Given the information above, calculate the GDP deflator in 2016.

Quizplus · Accepted Answer

To calculate the GDP deflator, we need to use the formula:
GDP deflator = (Nominal GDP/Real GDP) x 100
Real GDP in 2016 is given as $650 billion (adjusted for inflation at the base year of 2010), and nominal GDP is given as $682 billion. So, plugging these numbers in the formula:
GDP deflator = (682/650) x 100 = 105. Therefore, the correct answer is D) 105.

Table 4.21 -Refer to Table 4.21.Given the Information Above, Calculate the GDP