Table 8-18
A very simple economy produces three goods: cameras,legal services,and books.The quantities produced and their corresponding prices for 2008 and 2013 are shown in the table above.
-Refer to Table 8-18.What is the GDP deflator in 2008 if 2013 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 2008 and 2013 are shown in the table above.
-Refer to Table 8-18.What is the GDP deflator in 2008 if 2013 is the base year?

Quizplus · Accepted Answer

The GDP deflator is calculated by dividing the nominal GDP by the real GDP and then multiplying by 100. If 2013 is the base year, the GDP deflator for 2008 would be less than 100, indicating that prices were lower in 2008 compared to the base year.

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