Table 8-19

-Refer to Table 8-19.Given the information above,calculate the GDP deflator in 2017.
A)87
B)95
C)105
D)114

Question

Table 8-19
 
-Refer to Table 8-19.Given the information above,calculate the GDP deflator in 2017.
A)87 
B)95 
C)105 
D)114

Quizplus · Accepted Answer

The GDP deflator is a measure of the price level of all final goods and services produced in an economy. To calculate the GDP deflator, we need to use the formula:
GDP deflator = (Nominal GDP / Real GDP) * 100

From Table 8-19, we can see that the nominal GDP for 2017 is $12,000 and the real GDP is $11,429. Therefore, the GDP deflator for 2017 would be:
GDP deflator = (12,000 / 11,429) * 100 = 104.98 ≈ 105

Hence, the correct answer is C)105.

Table 8-19 -Refer to Table 8-19.Given the Information Above,calculate the GDP Deflator