Budget Deficit Question?

Question

How do you calculate the real values of the deficit and the ratios of the deficit and the debt to GDP when you are given a table that tells you nominal deficit, nominal debt, GDP deflator, and nominal gdp?

I'm really confused!!

Answer 1

To get real value of deficit use the GDP deflator.
The to get ratios of the deficit and the debt to GDP use the ratio of nominal values

math note:
(ax)/(ay)=x/y so it doesn't mater whether or not you convert to real before taking the ratio