Correct Answer: (Nominal GDP / Real GDP) × 100
Subject: economics
Explanation: • <b>Key Fact</b> GDP Deflator = (Nominal GDP / Real GDP) × 100. • <b>Supporting Detail</b> It measures inflation across the entire economy, covering all goods and services. • <b>Related Concept</b> Unlike CPI/WPI, it has no fixed basket and no base year bias. • <b>Why wrong options are wrong</b> The numerator must be Nominal GDP (current prices) divided by Real GDP (base prices). • <b>Exam Trick</b> Deflator = N/R * 100 (Nominal over Real). • <b>Additional Info</b> Real GDP reflects the value of goods produced in base-year prices.
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