What will be the GDP deflator when Nominal GDP is 50,000 crore and Real GDP is 25,000 crore?

200

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

GDP deflator = \(\frac{50,000 }{ 25,000}\) * 100

GDP deflator = 2 * 100 = 200

It indicates that the price has gone up by 200%