Given a Real GDP of $5,000 and a Nominal GDP of $5,500, calculate the GDP deflator. Round your answer to the nearest tenth if necessary.(1 point)

Question

Responses

90.9
90.9

110
110

1.1

Answer 1

The GDP deflator is calculated by dividing Nominal GDP by Real GDP and then multiplying by 100.

GDP Deflator = (Nominal GDP / Real GDP) x 100
GDP Deflator = ($5,500 / $5,000) x 100
GDP Deflator = 1.1 x 100
GDP Deflator = 110

Therefore, the GDP deflator is 110.