Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

General Knowledge

Topic

Economics

Question:

What do you mean by "GDP deflator"?

Options:

Ratio of Nominal GDP to National Income

Ratio of Real GDP to Nominal GDP

Ratio of Nominal GDP to Real GDP

Ratio of National Income to Nominal GDP

Correct Answer:

Ratio of Nominal GDP to Real GDP

Explanation:

Real GDP is the inflation/deflation adjusted GDP whereas nominal GDP does not take any price change into consideration. The Ratio of Nominal GDP to Real GDP is called as "GDP Deflator"