Question

Which of the following is called GDP Deflator?
A) Ratio of nominal to real GDP B) Ratio of nominal to real GNP C) Ratio of nominal to real CPI D) Ratio of real to nominal GNP

Answer 1

Answer:

I think that the answer is (A)

Answer 2

Concept:

Gross domestic product is the market value of final goods and services produced within the economy within the given time period.

Given:

Which of the following is called GDP Deflator that are ratio of nominal to real GDP, ratio of nominal to real GNP, ratio of nominal to real CPI or real to nominal GNP.

Find:

To find the definition of GDP deflator.

Solution:

• The ratio of nominal GDP to real GDP is known as GDP deflator.

• The ratio of nominal to real GNP is known as GNP deflator.

• The ratio of nominal to real CPI is known as CPI index.

• The ratio of real to nominal GNP is known as GNP.

The correct option is ratio of nominal to real GDP.