ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If nominal out is $100 billion dollars while real output is $90 then the GDP deflator is
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approximately 100
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110
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111.1
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-110
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Explanation:
Detailed explanation-1: -Divide the nominal GDP by the GDP deflator and multiply by 100. This will give you the real GDP.
Detailed explanation-2: -If the GDP deflator is greater than 100, then the economy has seen a positive change in price level since the base year. In other words, the economy has experienced inflation.
Detailed explanation-3: -Nominal GDP: An economic measure that measures the value of all economic outputs at the prevailing market prices. Real GDP: An economic measure that accounts only for the change in quantity output. More items •01-Dec-2022
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