Question

If nominal gdp is $1650 and real gdp is $1500, then the gdp deflator is: group of answer choices

a. 100.0
b. 150.0
c. 110.0
d. 115.5

Answer 1

The GDP deflator can be calculated by dividing the nominal GDP by the real GDP and multiplying by 100. In this case, the GDP deflator is 110.0.

Step-by-step explanation:

The GDP deflator can be calculated by dividing the nominal GDP by the real GDP, and then multiplying by 100.

In this case, the nominal GDP is $1650 and the real GDP is $1500.

So, the calculation is:

GDP deflator = (Nominal GDP / Real GDP) * 100 = ($1650 / $1500) * 100 = 110.0

Therefore, the answer is 110.0