Nominal GDP in a given year is $1.2 trillion, real GDP in the same year is $1.1

trillion. The GDP Deflator is:

1.0909

109.09

O 0.916

91.66

109.9

Explanation:

GDP deflator is the calculation of the new prices of all the goods and services produced domestically in a given year.

GDP deflator is calculated by the division of the nominal GDP by the Real GDP and multiplying by 100.

GDP deflator = Nominal GDP/Real GDP*100

This translates to 1.2 trillion dollars/1.1 trillion dollars which will give 1.0909

The 1.0909 is then multiplied by 100 to give 109.9.