Use this information to calculate GDP deflator Nominal GDP i

Use this information to calculate GDP deflator

Nominal GDP is $14 trillion

Real GDP is $12 trillion

Select one:

a. 86

b. 117

c. 112

d. 114

Solution

Answer
GDP deflator=(Nominal GDP /Real GDP)*100
=(14/12)*100
=116.666667
The GDP deflator is 117
Option b