The value of Nominal GDP is 1100 dollar and the value of Real GDP is 1000 dollar. Find the value of GDP deflator.

0.9 1.1 1 0.8

1.1

The correct answer is Option (2) → 1.1 GDP Deflator= Nominal GDP/Real GDP Nominal GDP= 1,100 Real GDP = 1,000 Thus GDP Deflator = 1,100/1,000= 1.1