If Nominal GDP Is $12 Trillion and Real GDP Is

question 41

Multiple Choice

If nominal GDP is $12 trillion and real GDP is $10 trillion,then the GDP deflator is

• A)83.33,and this indicates that the price level has decreased by 16.67 percent since the base year.
• B)83.33,and this indicates that the price level has increased by 83.33 percent since the base year.
• C)120,and this indicates that the price level has increased by 20 percent since the base year.
• D)120,and this indicates that the price level has increased by 120 percent since the base year.