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For Each of the Following Values of Nominal GDP and Real

Question 396

Essay

For each of the following values of nominal GDP and real GDP, calculate the GDP price deflator.
a) Nominal GDP = $600; real GDP = $800.
b) Nominal GDP = $900; real GDP = $900.
c) Nominal GDP = $1,200; real GDP = $1,000

Correct Answer:

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a) The GDP deflator equals ($6...

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