Which of the following calculations will yield the correct measure of real GDP?
A)divide nominal GDP by the consumer price index
B)divide the GDP deflator by the consumer price index
C)multiply nominal GDP by the consumer price index
D)multiply nominal GDP by the GDP deflator
E) none of the above

Question

Quizplus · Accepted Answer

Real GDP is calculated by dividing nominal GDP by the GDP deflator, not by the consumer price index, and not through multiplication. None of the options provided correctly describe this process.

Which of the Following Calculations Will Yield the Correct Measure