Refer to the information provided in Table 6.5 below to answer the questions that follow.
Table 6.5

-Refer to Table 6.5.Assume that this economy produces only two goods Good X and Good Y.If year 1 is the base year,the value for this economy's GDP deflator in year 1 is
A)1.
B)100.
C)110.
D)111.

Question

Refer to the information provided in Table 6.5 below to answer the questions that follow.
Table 6.5
 
-Refer to Table 6.5.Assume that this economy produces only two goods Good X and Good Y.If year 1 is the base year,the value for this economy's GDP deflator in year 1 is
A)1. 
B)100. 
C)110. 
D)111.

Quizplus · Accepted Answer

The GDP deflator in the base year is always 100 because it is a measure of the level of prices of all new, domestically produced, final goods and services in an economy, and in the base year, the nominal GDP equals the real GDP.

Refer to the Information Provided in Table 6