If nominal GDP in 2019 equals $14 trillion and real GDP in 2019 equals $11 trillion, what is the value of the GDP deflator?
A)0.79
B)1.03
C)1.27
D)3.2

Name: If nominal GDP in 2019 equals $14 trillion and real GDP in 2019 equals $11 trillion, what is the value of the GDP deflator? A)0.79 B)1.03 C)1.27 D)3.2
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Question

Quizplus · Accepted Answer

The GDP deflator is calculated as (Nominal GDP / Real GDP) x 100. So, ($14 trillion / $11 trillion) x 100 = 1.27 or 127.

If Nominal GDP in 2019 Equals $14 Trillion and Real