Question : ________ is calculated by dividing the nominal GDP in a given year by the real GDP for the same year and multiplying it by 100.
Option 1: Disposable income
Option 2: GDP deflator
Option 3: Real income
Option 4: Per capita income
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Correct Answer: GDP deflator
Solution : The correct option is the GDP deflator .
The GDP deflator is calculated by dividing the nominal GDP (gross domestic product at current prices) in a given year by the real GDP (gross domestic product at constant prices, adjusted for inflation) for the same year, and then multiplying the result by 100.
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