If the GDP deflator is greater than 100, it indicates that:

CA Foundation · Business Economics · PYQS · September 2025
If the GDP deflator is greater than 100, it indicates that:
(A) A. Real GDP is greater than nominal GDP.
(B) B. Nominal GDP is greater than real GDP.
(C) C. Price levels are lower as compared to the base year.
(D) D. Real GDP is equal to nominal GDP.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Nominal GDP is greater than real GDP.

Topics: Determination of National Income

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