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If a Country's real GDP is τ\overline{\mathbf{\tau}} 400 crores and its nominal GDP is τ\overline{\mathbf{\tau}} 1000 crores, its GDP deflator is : (Choose the correct alternative).

Solution

Correct Option: 1

GDP deflator = Nominal GDPReal GDP×100=1000400×100=250\frac{\text{Nominal GDP}}{\text{Real GDP}} \times 100 = \frac{1000}{400} \times 100 = 250.

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