GDP deflator indicates

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Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: National Income Accounting

Question:

GDP deflator indicates

Options:

Ratio of Nominal to real GDP

Ratio of real to Nominal GDP

Difference between two years GDP

Excess of Nominal GDP over Real GDP

Correct Answer:

Ratio of Nominal to real GDP

Explanation:

The correct answer is option (1) : Ratio of Nominal to real GDP

GDP Deflator: It is the ratio of nominal to real GDP.