If a Country's real GDP is Rs.400 crores and its nominal GDP is Rs.1000 crores, its GDP deflator is:
(Choose the correct alternative).
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 250
Given:
Nominal GDP = Rs.1000 crores
Real GDP = Rs.400 crores
The GDP deflator is the ratio of nominal to real GDP, and it is an index of prices. In percentage terms:
GDP deflator = (Nominal GDP/Real GDP) × 100
GDP deflator = (1000/400) × 100 = 250
So prices are 2.5 times their base-year level.
NCERT (2026-27): Introductory Macroeconomics — Chapter 2: National Income Accounting
|
