What is GDP Deflector?

CA Foundation · Business Economics · MTP · September 2025
What is GDP Deflector?
(A) A. It is GDP of Base Year
(B) B. It is ratio of nominal GDP in a given year to real GDP of that year
(C) C. It is GDP at current price
(D) D. It is GDP of current year at base year price

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. It is ratio of nominal GDP in a given year to real GDP of that year

Topics: Determination of National Income

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