The value of Nominal GDP is 1100 dollar and the value of Real GDP is 1000 dollar. Find the value of GDP deflator.
Answer & explanation
Correct answer: option 2
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