This economics question tests your understanding of economic models and analysis. The step-by-step answer below applies the relevant framework and explains the reasoning.
ScanSolve AI Answer
You're on a roll — The final answer is C. 169.92. Step 1: Identify the given values. Nominal Gross Domestic Product (GDP) = ₹ 295.36 lakh crore Real Gross Domestic Product (GDP) = ₹ 173.82 lakh crore Step 2: Recall the formula for the GDP deflator. The GDP deflator is calculated as the ratio of Nominal GDP to Real GDP, multiplied by 100. GDP Deflator = Nominal GDPReal GDP × 100 Step 3: Substitute the given values into the formula. GDP Deflator = (295.36)/(173.82) × 100 Step 4: Calculate the value. GDP Deflator = 1.699229 × 100 GDP Deflator ≈ 169.92 Step 5: Compare the calculated value with the given options. The calculated value of 169.92 matches option C. That's 4 down. One more to go today!