Question

The value of the nominal GDP of India was ₹ 2,800 crores during the year 2011. The value of GDP of the country during the same year evaluated at the price of some base year was ₹3,200 crores. Find the value of GDP deflator of the year in percentage terms.

Answer 1

The ratio of nominal GDP to real GDP is known as GDP deflator

∴GDP deflator =  \(\frac{Nominal\,GDP}{Real\,GDP}\)

Value of deflator is percentage is

\(\frac{Nominal\,GDP}{Real\,GDP}\) x 100 

∴  \(\frac{2800\,Croces}{3200\,Cores}\) = 87.5

GDP deflator is percentage is 87.5 Percent