Table 8-14

-Refer to Table 8-14.Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The GDP deflator for 2016 equals

Question

Table 8-14
 
-Refer to Table 8-14.Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The GDP deflator for 2016 equals

Quizplus · Accepted Answer

To calculate the GDP deflator, we need to divide nominal GDP by real GDP and multiply by 100. Based on the data in the table, we have:

Nominal GDP in 2016 = $18,494 billion
Real GDP in 2016 = $17,028 billion

Therefore, the GDP deflator for 2016 = (18,494/17,028) x 100 = 108.5.

So, the correct answer is C.

Table 8-14 -Refer to Table 8-14.Consider the Following Data on Nominal GDP