Suppose in 2007, Nominal GDP in a Country Clarendon Was

question 144

Multiple Choice

Suppose in 2007, nominal GDP in a country Clarendon was $12,840 billion and real GDP was $10,560 billion. Calculate the value of the implicit price deflator, in the way such numbers are normally published.

• A) 21.59
• B) 82.24
• C) 121.59
• D) 177.57

---

Definitions:

Market Portfolio

A theoretical bundle of investments that includes every available asset in the market, weighted by market capitalization.

U.S. Securities

Financial instruments issued by the U.S. government, corporations or other entities, including stocks, bonds, and treasury securities.

World Equities

Refers to stocks and equity securities from companies around the globe, allowing investors to diversify their portfolio internationally.

Home Bias

The tendency of investors to allocate a greater share of their portfolios to domestic securities than would be the case under neutral diversification.