If the GDP deflator is less than 100 in 2013,then nominal GDP ________ real GDP in 2013.
A) is less than
B) is greater than
C) is equal to
D) may be greater than or less than

Question

Quizplus · Accepted Answer

If the GDP deflator is less than 100, it means that the general price level has decreased compared to the base year. This implies that nominal GDP, which is calculated using current prices, is lower than real GDP, which is adjusted for inflation using the base year prices. Therefore, nominal GDP is less than real GDP.

If the GDP Deflator Is Less Than 100 in 2013,then