Question

In​ 2011, the value of the GDP deflator is 113. ​(Enter your response rounded to the nearest whole​ number.) In​ 2012, the value of the GDP deflator is 119. ​(Enter your response rounded to the nearest whole​ number.)

Answer 1

Answer:

2011 = 113

2012 = 119

Explanation:

The computation is shown below:

GDP deflator  = (Nominal GDP) ÷ (Real GDP) × 100

For 2011, it would be

                       = ($​13,495 billion) ÷ (​$11,919 billion) × 100

                       = 113

For 2012, it would be

                       = ($14,241 billion) ÷ (​$12,007 billion) × 100

                       = 119

In order to find out the GDP deflator, we divided the Nominal GDP by the Real GDP