The GDP deflator is the ratio of real GDP to nominal GDP multiplied by 100. difference...

Question

Question

The GDP deflator is the

ratio of real GDP to nominal GDP multiplied by 100.

difference between real GDP and nominal GDP multiplied by 100.

difference between nominal GDP and real GDP multiplied by 100.

ratio of nominal GDP to real GDP multiplied by 100.

Answer 1

Answer #1

The GDP Deflator is the ratio of Nominal GDP to Real GDP multiplied by 100

For example Nominal GDP = 100 Billion

Real GDP = 80 Billion

Therefore , GDP Deflator = Nominal GDP / Real GDP * 100

= 100 / 80 * 100 = 125

Answer 2

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