During this year,nominal GDP in Syldavia was $720 billion and real GDP was $720 billion.The GDP price index in Syldavia in this year was

Question

Quizplus · Accepted Answer

The GDP Price Index, also known as the GDP Deflator, measures the change in prices of goods and services produced in an economy, and is calculated as (Nominal GDP/Real GDP) x 100. In this case, since nominal GDP ($720 billion) is equal to real GDP ($720 billion), the GDP price index would be 100, indicating that there was no inflation or deflation during the year.

During This Year,nominal GDP in Syldavia Was $720 Billion and Real