For each of the following values of nominal GDP and real GDP, calculate the GDP price deflator
a) Nominal GDP = $600; real GDP = $800.
b) Nominal GDP = $900; real GDP = $900.
c) Nominal GDP = $1,200; real GDP = $1,000
a) The GDP deflator equals ($600 ÷ $800 ) × 100, which is 75.
b) The GDP deflator equals ($900 ÷ $900 ) × 100, which is 100.
c) The GDP deflator equals ($1,200 ÷ $1,000 ) × 100, which is 120.
Economics
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