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ArbitrLikvidat
18 days ago
13

Suppose nominal GDP in an economy is $11 trillion and real GDP is $10 trillion. What would be the implicit price deflator?

Business
1 answer:
Scilla [3.2K]18 days ago
5 0

Response:

The implicit price deflator will be 1.10

Details:

Nominal GDP = $11 trillion

Real GDP = $10 trillion

Apply the Implicit price deflator formula

Implicit price deflator = Nominal GDP / Real GDP

Implicit price deflator = $11 trillion / 10 trillion

Implicit price deflator = 1.10

Thus, the implicit price deflator is 1.10 when nominal GDP is $11 trillion and real GDP is $10 trillion.

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Answer:

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The amount of $175,000 signifies the surplus of the fair market value of the marital property after accounting for the property's cost and the alimony paid to Karen.  Thus, Mike recognizes a gain of $175,000 following the property sale.

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