$\begin{array}{rrrr}&\text { Nominal GDP }\
&\text { (in billions of dollars) }&\text { GDP deflator }&\text { CPI }\\hline
2002 & \$ 6,992.4 & 106.2 & 151.6 \
2003 & 7,431.6 & 109.1 & 153.8 \
2004 & 7,843.2 & 112.3 & 157.8
\end{array}$

Table 7.1 GDP Based on Table 7.1,the real GDP for 2003 was
A)$4,832.0 billion.
B)$6,811.7 billion.
C)$6,584.2 billion.
D)$6,984.1 billion.

Question

$\begin{array}{rrrr}&\text { Nominal GDP }\
&\text { (in billions of dollars) }&\text { GDP deflator }&\text { CPI }\\hline
2002 & \$ 6,992.4 & 106.2 & 151.6 \
2003 & 7,431.6 & 109.1 & 153.8 \
2004 & 7,843.2 & 112.3 & 157.8
\end{array}$

Table 7.1 GDP Based on Table 7.1,the real GDP for 2003 was
A)$4,832.0 billion.
B)$6,811.7 billion.
C)$6,584.2 billion.
D)$6,984.1 billion.

Quizplus · Accepted Answer

Real GDP is calculated by dividing nominal GDP by the GDP deflator and multiplying by 100. For 2003, real GDP is 7,431.6 / 109.1 * 100 = $6,811.7 billion.

Table 71 GDP Based on Table 7