The implicit price deflator is given by the formula

A. nominal GDP in current period ÷ nominal GDP in base period.
B. nominal GDP in current period ÷ real GDP in base period.
C. nominal GDP ÷ real GDP.
D. real GDP ÷ nominal GDP.

Ans: C. nominal GDP ÷ real GDP.

Economics

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Which of the following is the best example of a government expenditure for goods or services?

A. salaries of Supreme Court justices B. social security pensions paid to the elderly C. welfare payments D. unemployment compensation

Economics