If GNP deflator is raised by 40% then which is right
a) nominal gnp increases by 40%
b) real gnp increases by 40%
c)both nominal n real gnp increases by 40%
d) nominal gnp increases by 40% n real gnp decreases by 40%
GNP deflator is nominal GNP/ Real GNP....if the deflator is increased by 40 % dn ut must be true that nominal GNP has increased by 40%....other things remainin constant
Akshay Jain
Masters in Economics
Delhi School of Economics
2013-15