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

1.1
1.1

110
110

0.9

Answer 1

The GDP deflator can be calculated using the following formula:

\[ \text{GDP deflator} = \left( \frac{\text{Nominal GDP}}{\text{Real GDP}} \right) \times 100 \]

Plugging in the given values:

\[ \text{GDP deflator} = \left( \frac{5500}{5000} \right) \times 100 = 1.1 \times 100 = 110 \]

Therefore, the GDP deflator is 110.