Suppose the European Union has a Nominal GDP of 20 trillion Euros, and their GDP deflator...

Question

Question

Suppose the European Union has a Nominal GDP of 20 trillion Euros, and their GDP deflator is 125. What is the European Union’s Real GDP?

25 trillion Euros

0.16 trillion Euros

16 trillion Euros

With a Real GDP of $15 trillion in 2015 and of $18 trillion in 2016, the real growth would be ________.

2%

16.7%

20%

Answer 1

Answer #1

- GDP deflator =100* nominal gdp / real gdp

125= 100*20/real gdp

Real gdp= 2000/125= 16

16 trillion euros.

- real growth rate= (18-15)*100/15= 20

20%

Answer 2

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