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).

250  

GDP deflator is basically calculated to eliminate the effect of any price change and calculate the real change in total output. GDP deflator = \(\frac{\text { Nominal GDP}}{\text {Real GDP }}\) * 100

According to the question,

GDP deflator = $\frac{\text { Nominal GDP}}{\text {Real GDP }} * 100$

GDP deflator =  \(\frac{\text {1000}}{\text {400 }}\) * 100

GDP deflator = \(\frac{\text {5}}{\text {2 }}\) * 100

GDP deflator = 250