Table 8-15

-Refer to Table 8-15.Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The GDP deflator for 2017 equals
A)94.1.
B)105.1.
C)106.2.
D)108.5.

Question

Table 8-15
 
-Refer to Table 8-15.Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The GDP deflator for 2017 equals
A)94.1. 
B)105.1. 
C)106.2. 
D)108.5.

Quizplus · Accepted Answer

To calculate the GDP deflator for 2017, we need to divide the nominal GDP by the real GDP and multiply by 100.

Nominal GDP for 2017 = $19,475 billion 
Real GDP for 2017 = $18,296 billion

GDP deflator for 2017 = (nominal GDP/real GDP) x 100 
= ($19,475/$18,296) x 100 
= 106.2

Therefore, the answer is C, 106.2.

Table 8-15 -Refer to Table 8-15.Consider the Following Data on Nominal GDP