The GDP deflator is the ratio of
A)real GDP to nominal GDP multiplied by 100.
B)real GDP to the inflation rate multiplied by 100.
C)nominal GDP to real GDP multiplied by 100.
D)nominal GDP to the inflation rate multiplied by 100.

Question

Quizplus · Accepted Answer

The GDP deflator is calculated by dividing nominal GDP by real GDP and then multiplying by 100. This measures the level of prices of all new, domestically produced, final goods and services in an economy.

The GDP Deflator Is the Ratio of