Question:
In a given year, if nominal GDP is Rs. 1 200 billion and real GDP is Rs. 1 000 billion, then the GDP deflator is
(1) 12%.
(2) 20%.
(3) 83.3.
(4) 120.
(5) 200.
Correct Answer:
(4)
Answer Explanation:
The formula is: GDP Deflator = (Nominal GDP / Real GDP) x 100. Therefore, GDP Deflator = (1200 / 1000) x 100 = 1.2 x 100 = 120.
Topic: National Income Year: 2022
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