In 2010, real GDP was $13.2 trillion and nominal GDP was $14.6 trillion. What was the GDP deflator for that year?
A) 90.4
B) 110.6
C) 192.7
D) 140

Question

Quizplus · Accepted Answer

The GDP deflator is calculated by dividing nominal GDP by real GDP and multiplying by 100. 
GDP deflator = (Nominal GDP / Real GDP) x 100
GDP deflator = (14.6 trillion / 13.2 trillion) x 100
GDP deflator = 1.106 x 100
GDP deflator = 110.6
Therefore, the answer is B.

In 2010, Real GDP Was $13