Assume that the nominal GDP for a given year is equal to $12,400 billion and the GDP deflator equals 112. Real GDP for that year is approximately
A) $13,888.0 billion.
B) $12,512.0 billion.
C) $11,071.4 billion.
D) $12,228.1 billion.

Question

Quizplus · Accepted Answer

Real GDP is calculated by dividing the nominal GDP by the GDP deflator (then multiplied by 100 to adjust for the percentage). So, $12,400 billion / 1.12 = $11,071.4 billion.

Assume That the Nominal GDP for a Given Year Is