Corrected for inflation, the real GDP was only about _____ times greater in 2014 than in 1959.
A)3.1
B)5.3
C)6.7
D)11.2

Question

Quizplus · Accepted Answer

To calculate the real GDP in 2014, we need to adjust the nominal GDP for inflation using a price index such as the GDP deflator. According to the Bureau of Economic Analysis, the nominal GDP in 1959 was approximately $523 billion, while in 2014 it was approximately $17,555 billion. Adjusting for inflation using the GDP deflator, we find that the real GDP in 1959 was approximately $3,173 billion in 2014 dollars. Therefore, the real GDP in 2014 was about 5.3 times greater than in 1959 ($17,555 billion / $3,173 billion).

Corrected for Inflation, the Real GDP Was Only About _____