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

The implicit price deflator will be 1.10

Explanation:

Nominal GDP = $11 trillion

Real GDP = $10 trillion

Use Implicit price deflator formula

Implicit price deflator = Nominal GDP / Real GDP

Implicit price deflator = $11 trillion / 10 trillion

Implicit price deflator = 1.10

So, The implicit price deflator will be 1.10 when the nominal GDP is $11 trillion and real GDP is $10 trillion .

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