Question

132. In 2010, nominal GDP was $14.6 trillion and the GDP deflator was 110.6. What was real GDP for that year?

     1. A) $16.1 trillion

     2. B) $14.3 trillion

     3. C) $13.2 trillion

     4. D) $12.1 trillion

Answer 1

In 2010, nominal GDP was $14.6 trillion and the GDP deflator was 110.6. What was real GDP for that year?

Nominal GDP was $14.6 trillion

GDP deflator was 110.6

Real GDP = (Nominal GDP ÷ GDP Deflator)*100

Real GDP = ($14.6 trillion ÷ 110.6)*100

Real GDP = $13.2 trillion

Answer – C) $13.2 trillion