Given a Real GDP of $5,000 and a Nominal GDP of $5,500, calculate the GDP deflator. Round your answer to the nearest tenth if necessary.(1 point)
Responses
90.9
90.9
110
110
1.1
The GDP deflator is calculated by dividing Nominal GDP by Real GDP and then multiplying by 100.
GDP Deflator = (Nominal GDP / Real GDP) x 100
GDP Deflator = ($5,500 / $5,000) x 100
GDP Deflator = 1.1 x 100
GDP Deflator = 110
Therefore, the GDP deflator is 110.