Question

In 2010, real GDP was $13.2 trillion (using 2005 prices) and nominal GDP was $14.6 trillion. Based on the GDP deflator, prices in 2010 were about _____ than prices in 2005.

Answer 1

Answer: B, B

Step-by-step explanation:

China's GDP passed one trillion USD between 1995 and 2000.

Between 2005 and 2010, China's GDP increased by approximately $4 trillion .

Answer 2

D. 10.6% higher

Step-by-step explanation:

Given that

Real GDP = 13.2 trillion

Nominal GDP = 14.6 trillion

Recall that

GDP deflator = (nominal GDP/ Real GDP) × 100

Thus,

GDP deflator = (14.6 ÷ 13.2) × 100

= 110.6 %

Therefore, 110.6 - 100

= 10.6% higher

This shows that prices in 2010 were about 10.6% higher than in 2005