For each of the following values of nominal GDP and real GDP, calculate the GDP price deflator
a) Nominal GDP = $600; real GDP = $800.
b) Nominal GDP = $900; real GDP = $900.
c) Nominal GDP = $1,200; real GDP = $1,000
a) The GDP deflator equals ($600 ÷ $800 ) × 100, which is 75.
b) The GDP deflator equals ($900 ÷ $900 ) × 100, which is 100.
c) The GDP deflator equals ($1,200 ÷ $1,000 ) × 100, which is 120.
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The labor force includes individuals who are:
I. Employed II. Unemployed III. Discouraged workers A) Both I and III B) I only C) Both I and II D) All I, II and III
If a consumer wishes to maximize satisfaction given limited income and MUx/Px< MUy/Py then the consumer should:
A. buy less of both X and Y. B. buy more of X and less of Y. C. buy more of Y and less of X. D. buy more of both X and Y.
Which of the following is not an obstacle to development?
A. Overpopulation B. Excessive investment C. Political instability D. Corruption
On average, since 1900 the population of the United States has grown by roughly ________ percent per year.
A. 1 B. 9 C. 6 D. 3