Question

The value of Nominal GDP is $1100 and the value of Real GDP is$1000. Find the value of GDP deflator.

• A. 0.9
• B. 1.1
• C. 1
• D. 0.8

Answer 1

Answer: (B)

1.1

Answer 2

The GDP deflator is calculated as Nominal GDP/Real GDP = $\frac{1100}{1000} = 1.1$.