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If Nominal GDP Is $10 Trillion and Real GDP Is

Question 36

Multiple Choice

If nominal GDP is $10 trillion and real GDP is $12 trillion,then the GDP deflator is


A) 83.33,and this indicates that the price level has decreased by 16.67 percent since the base year.
B) 83.33,and this indicates that the price level has increased by 83.33 percent since the base year.
C) 120,and this indicates that the price level has increased by 20 percent since the base year.
D) 120,and this indicates that the price level has increased by 120 percent since the base year.

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