Nominal GDP Is $10,000 Billion in 2000, but Real GDP

question 117

Multiple Choice

Nominal GDP is $10,000 billion in 2000, but real GDP is only $9,000.It follows that:

• A)the GDP deflator is equal to 111.
• B)the GDP deflator is equal to 100.
• C)the GDP deflator is equal to 90.
• D)prices must have decreased relative to the base year.

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