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  • 26-02-2021
  • Business
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If nominal GDP in 2014 is $20,000 billion while real GDP is $16,000 billion, then the GDP deflator in 2014 is

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abiolataiwo2015
abiolataiwo2015 abiolataiwo2015
  • 27-02-2021

Answer:

125

Explanation:

Calculation for GDP deflator in 2014

Using this formula

2014 GDP deflator=nominal GDP /real GDP*100

Let plug in the formula

2014 GDP deflator=$20,000 billion/$16,000 billion*100

2014 GDP deflator=125

Therefore GDP deflator in 2014 is 125

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