Asked by
Danielle Nicole
on Nov 16, 2024
Verified
If nominal GDP is $10,000 and real GDP is $8,000, then the GDP deflator is 125.
GDP Deflator
A standard for assessing the price rates of all freshly made, domestically sourced, final goods and services in an economic environment.
Real GDP
Gross Domestic Product adjusted for inflation, reflecting the value of all goods and services produced by an economy in real terms.
Nominal GDP
The total economic value of all the final products and services generated within a nation's borders in a specified timeframe, calculated without any modification for inflation.
- Acquire knowledge about the GDP deflator serving as a gauge for changes in price levels and the process involved in its determination.
Verified Answer
KA
Learning Objectives
- Acquire knowledge about the GDP deflator serving as a gauge for changes in price levels and the process involved in its determination.