-Refer to the above table (figures in billions). The value of the GDP deflator in 2014 is
A) 100.
B) 102.
C) 104.
D) uncertain without more information.

Question

-Refer to the above table (figures in billions). The value of the GDP deflator in 2014 is
A) 100. 
B) 102. 
C) 104. 
D) uncertain without more information.

Quizplus · Accepted Answer

The GDP deflator is calculated by dividing nominal GDP by real GDP and multiplying by 100. In 2014, nominal GDP was $17,419 billion and real GDP was $17,075 billion. Therefore, the GDP deflator was 100.

-Refer to the Above Table (Figures in Billions)