Q 106

The 'GDP deflator' is equal to
A) real GDP divided by nominal GDP.
B) nominal GDP divided by real GDP.
C) real GDP divided by nominal GDP multiplied by 100.
D) nominal GDP divided by real GDP multiplied by 100.

Q 107

The ________ is a measure of the price level and is calculated by dividing ________ by ________ and multiplying by 100.
A) GNI; real GDP; nominal GDP
B) GDP deflator; real GDP; nominal GDP
C) GDP deflator; nominal GDP; real GDP
D) GNI; nominal GDP; real GDP

Q 108

Under what circumstances would the GDP deflator be less than 100 after the base year?
A) The GDP deflator will be less than 100 if there has been inflation relative to the base year.
B) The GDP deflator will be less than 100 if there has been inflation of less than 2% per year relative to the base year.
C) The GDP deflator will be less than 100 if there has been deflation relative to the base year.
D) There are no circumstances under which the GDP deflator could be less than 100.