CUET Preparation Today
Suppose GDP deflator is 300, what comprehension can be made from it? |
Implies that price level has gone up by 300% Implies that price level has gone down by 300% Implies that price level has gone up by 200% Implies that price level has gone down by 200% |
Implies that price level has gone up by 200% |
The correct answer is Option 3: Implies that price level has gone up by 200% The GDP deflator of 300 means that nominal GDP is three times real GDP, implying that the price level has risen by 200% compared to the base year. GDP Deflator Formula: GDP Deflator=(Nominal GDP/Real GDP) *100 If the deflator is 300, then Nominal GDP=3×Real GDP |
