Q. The GDP Deflator is a ration between which of the following?

[A] Real GDP and Nominal GDP

[B] Real GDP and Inflation

[C] Nominal GDP and Inflation

[D] Real GDP and Base year

Answer: A

Explanation: The ratio of nominal to real GDP is a well-known index of prices. This is called GDP Deflator. Thus, if GDP stands for nominal GDP and gdp stands for real GDP then, GDP deflator = GDP /gdp.

Source: NCERT – Macro economics