The price level can be derived as ________ and is called the ________.
A) Price level = Nominal GDP ｸ Real GDP; CPI
B) Price level = Nominal GDP ｴ Real GDP; CPI
C) Price level =Real GDP ｴ Nominal GDP; GDP deflator
D) Price level = Real GDP ｸ Nominal GDP; Paasche deflator
E) Price level =Nominal GDP ｸ Real GDP; GDP deflator

Question

Quizplus · Accepted Answer

The price level can be derived by dividing Nominal GDP by Real GDP, and this ratio is called the GDP deflator.

The Price Level Can Be Derived as ________ and Is