If the real GDP equals $100 billion this year and nominal GDP is $200 billion,the price level since the base year has increased
A)$200 billion
B)50 percent
C)$100 billion
D)100 percent
E)200 percent

Question

Quizplus · Accepted Answer

The price level increase is calculated by the formula: (Nominal GDP / Real GDP) x 100 - 100. Here, (200 / 100) x 100 - 100 = 100%, indicating the price level has doubled since the base year.

If the Real GDP Equals $100 Billion This Year and Nominal