The ratio of nominal GDP to real GDP multiplied by 100 is the
A) NNP.
B) GDP deflator.
C) national income.
D) same as depreciation.

Question

Quizplus · Accepted Answer

The ratio of nominal GDP to real GDP multiplied by 100 gives the GDP deflator, which is a measure of the overall level of prices in the economy. Option A is incorrect as NNP (Net National Product) is a measure of national income that accounts for depreciation. Option C is also incorrect as national income refers to the total income earned by factors of production in an economy. Option D is incorrect as depreciation refers to the loss in value of a fixed asset over time.

The Ratio of Nominal GDP to Real GDP Multiplied by 100