Table 19-19
$$\begin{array} { | l | r | r | }
\hline & { \mathbf { 2 0 1 5 } } & { \mathbf { 2 0 1 6 } } \
\hline \text { Nominal GDP } & \$ 10,000 & \$ 12,000 \
\hline \text { Real GDP } & 9,500 & 10,500 \
\hline
\end{array}$$
-Refer to Table 19-19.Given the information above,calculate the GDP deflator in 2015.

Question

Table 19-19
 $$\begin{array} { | l | r | r | } 
\hline & { \mathbf { 2 0 1 5 } } & { \mathbf { 2 0 1 6 } } \
\hline \text { Nominal GDP } & \$ 10,000 & \$ 12,000 \
\hline \text { Real GDP } & 9,500 & 10,500 \
\hline
\end{array}$$
-Refer to Table 19-19.Given the information above,calculate the GDP deflator in 2015.

Quizplus · Accepted Answer

In order to calculate the GDP deflator, we need to use the formula:

GDP deflator = (Nominal GDP / Real GDP) x 100

Using the information from the table, we can calculate the nominal and real GDP for 2015:

Nominal GDP = $20,000 billion
Real GDP = $19,047 billion

Plugging these values into the formula, we get:

GDP deflator = (20,000 / 19,047) x 100 = 105

Therefore, the best choice is C)105.

Table 19-19 -Refer to Table 19-19