Question 1
If nominal GDP is $8 trillion and real GDP is $6 trillion, the GDP deflator is
◦ 48.
◦ 75.
◦ 133.33.
◦ 480.
Question 2
If the GDP deflator is greater than 100, then
◦ nominal GDP is greater than real GDP.
◦ nominal GDP is lower than real GDP.
◦ nominal GDP equals real GDP.
◦ prices decreased by more than half between the current and the base years.