The implicit GDP price deflator can be defined as
A)the consumer price index.
B)(Nominal GDP + Real GDP)/ 2.
C)(Real GDP / Nominal GDP) 100.
D)Nominal GDP - Real GDP.
E)(Nominal GDP / Real GDP) 100.

Question

Quizplus · Accepted Answer

The implicit GDP price deflator is calculated as (Nominal GDP / Real GDP) * 100, which measures the level of prices of all new, domestically produced, final goods and services in an economy.

The Implicit GDP Price Deflator Can Be Defined as