Calculate the GDP deflator from the given data:
Real GDP = 1,000 and Nominal GDP = 5,000
Answer & explanation
Correct answer: option 1
GDP deflator is the ratio of nominal GDP to real GDP. Thus, GDP deflator = 5 i.e. \(\frac{5,000 }{1,000 }\)
Calculate the GDP deflator from the given data:
Real GDP = 1,000 and Nominal GDP = 5,000
Correct answer: option 1
GDP deflator is the ratio of nominal GDP to real GDP. Thus, GDP deflator = 5 i.e. \(\frac{5,000 }{1,000 }\)