Table 8-18
A very simple economy produces three goods: cameras,legal services,and books.The quantities produced and their corresponding prices for 2013 and 2018 are shown in the table above.
-Refer to Table 8-18.What is the GDP deflator in 2013 if 2018 is the base year?

Question

Table 8-18
  A very simple economy produces three goods: cameras,legal services,and books.The quantities produced and their corresponding prices for 2013 and 2018 are shown in the table above.
-Refer to Table 8-18.What is the GDP deflator in 2013 if 2018 is the base year?

Quizplus · Accepted Answer

The GDP deflator is calculated as (Nominal GDP/Real GDP) x 100. If 2018 is the base year, the GDP deflator for 2013 would be less than 100, indicating that prices were lower in 2013 compared to the base year.

Table 8-18 a Very Simple Economy Produces Three Goods: Cameras,legal