If a country’s GNP in the current year is N65 billion, and the GNP in the base year is N50 billion, the GNP deflator is?
-
130.0
- 30.0
- 15.0
- 1.3
The correct answer is: A
Explanation
GNP deflator = \(\frac{\text{Nominal GNP}}{\text{real GNP}}\) x 100
GNP deflator = \(\frac{65}{50}\) x 100 = 130