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      Question

      In a given year, the nominal GDP of a country was $2,500

      billion and the real GDP was $2,000 billion. What is the GDP deflator for that year?
      A 100 Correct Answer Incorrect Answer
      B 115 Correct Answer Incorrect Answer
      C 125 Correct Answer Incorrect Answer
      D 150 Correct Answer Incorrect Answer

      Solution

      The GDP deflator is calculated using the formula: GDP deflator = (Nominal GDP/Real GDP)*100 Β  = (2500/2000)*100 = 125

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