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ASHA 777 [7]
3 years ago
9

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

Business
1 answer:
Juli2301 [7.4K]3 years ago
6 0
<span>If nominal gdp is $12 trillion and real gdp is $10 trillion, then the gdp deflator is: </span><span>120, and this indicates that the price level has increased by 20 percent since the base year.</span>
<span>
GDP deflator reflect the effects of new prices to the product that produced domestically. 
It calculated with this equation:

GDP Deflator = GDP Nominal/Real GDP x 100

= 12 Trllion /10 Trillion   x 100
= 120</span>
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