Question

question 12
to convert a nominal gdp to a real gdp, you would use
○ the pce deflator.
○ the gdp deflator.
○ the ppi measure.
○ the cpi measure.

Explanation:

To convert nominal GDP to real GDP, we use the GDP deflator. The formula for real GDP is $\text{Real GDP} = \frac{\text{Nominal GDP}}{\text{GDP Deflator}} \times 100$. The PCE deflator is used for personal consumption expenditures, PPI (Producer Price Index) measures prices received by producers, and CPI (Consumer Price Index) measures prices paid by consumers for a basket of goods and services. Only the GDP deflator is specifically used to adjust nominal GDP for inflation to get real GDP.

Answer:

B. the GDP deflator.