The table shows the nominal and real GDP of a country (Rs crore), with 2021 as the base year:
| Year | Nominal GDP | Real GDP |
|---|---|---|
| 2021 | 1,000 | 1,000 |
| 2022 | 1,210 | 1,100 |
| 2023 | 1,380 | 1,150 |
What is the GDP deflator for 2023 in percentage terms?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 120 per cent
Given:
Nominal GDP in 2023 = Rs 1,380 crore
Real GDP in 2023 = Rs 1,150 crore
The GDP deflator is the ratio of nominal to real GDP, in percentage terms here.
GDP deflator = (1,380 ÷ 1,150) × 100 = 120 per cent
Option (1) 110 per cent — this is the deflator for 2022.
Option (4) 138 per cent — wrongly divides 2023 nominal GDP by base-year GDP.
NCERT (2026-27): “2.4 Nominal and Real GDP … The ratio of nominal to real GDP is a well known index of prices. This is called GDP Deflator. Thus if GDP stands for nominal GDP and gdp stands for real GDP then, GDP deflator = GDP gdp . Sometimes the deflator is also denoted in percentage terms. In such a case deflator = GDP gdp × 100 per cent. …” |