If nominal output rises from $13.5 billion to $14 billion and the GDP deflator rises from 100 to...

Question

If nominal output rises from $13.5 billion to $14 billion and the GDP deflator rises from 100 to 105:
What has happened to real output?

David · Accepted Answer

If nominal output rises from $13.5 billion to $14 billion and the GDP deflator rises from 100 to 105: What has happened to real output?
(Nominal output/ real output)*100 = GDP deflator
Earlier nominal GDP/real GDP=13.5/13.5 = 1= 1*100 =  100 
Now:
Nominal GDp = 14
Deflator= 105 or 1.

If nominal output rises from $13.5 billion to $14 billion and the GDP deflator rises from 100 to 105: What has happened to real output?

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