he GDP deflator = nominal GDP/______ x 100Multiple choice question.the unemployment ratepopulationreal GDPthe consumer price index

Break Down the Problem

1. Identify what is needed to complete the formula for the GDP deflator.
2. Analyze the choices given to find the one that fits the definition of the GDP deflator.

Relevant Concepts

• The GDP deflator is a measure of the level of prices of all new, domestically produced, final goods and services in an economy.
• The formula for the GDP deflator is: $\text{GDP Deflator} = \frac{\text{Nominal GDP}}{\text{Real GDP}} \times 100$

Analysis and Detail

1. The GDP deflator is derived from nominal GDP and real GDP.
2. Nominal GDP reflects the market value of goods and services at current prices, while real GDP adjusts for inflation to reflect the true value.

Verify and Summarize

• The answer must relate to the term that complements nominal GDP to formulate the GDP deflator.
• Among the options provided, "real GDP" is the correct term needed in the denominator of the GDP deflator formula.

Final Answer

The GDP deflator = nominal GDP / real GDP x 100.