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40 Use the following table to answer the next question. GDP figures are in billions of dollars. Year Nominal GDP Real GDP Pri
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Answer #1

Price\; Index = \frac{Nominal \;GDP}{Real\;GDP}*100

So, Real GDP = (Nominal GDP * 100) ÷ Price Index

So, In year 2 :

Real GDP = (5500 * 100) ÷ 112

= 5500 ÷ 1.12

= 4910.71

= $4911 billion

Hence, Option C. $4911 billion is correct.

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