$\begin{array}{rrrr}&\text { Nominal GDP }\
&\text { (in billions of dollars) }&\text { GDP deflator }&\text { CPI }\\hline
2001 & \$ 5,900 & 120.1 & 128.3 \
2002 & 6,300 & 123.0 & 131.7 \
2003 & 6,800 & 126.3 & 136.5
\end{array}$

Table 7.2
GDP for Newland Based on Table 7.2,the real GDP for 2003 was
A)$8,588.4 billion.
B)$4,981.7 billion.
C)$9,282.0 billion.
D)$5,384.0 billion.

Question

$\begin{array}{rrrr}&\text { Nominal GDP }\
&\text { (in billions of dollars) }&\text { GDP deflator }&\text { CPI }\\hline
2001 & \$ 5,900 & 120.1 & 128.3 \
2002 & 6,300 & 123.0 & 131.7 \
2003 & 6,800 & 126.3 & 136.5
\end{array}$

Table 7.2 
GDP for Newland Based on Table 7.2,the real GDP for 2003 was
A)$8,588.4 billion.
B)$4,981.7 billion.
C)$9,282.0 billion.
D)$5,384.0 billion.

Quizplus · Accepted Answer

Real GDP is calculated by dividing nominal GDP by the GDP deflator (and then multiplying by 100). For 2003, it is $ \frac{6,800}{126.3} \times 100 = 5,384.0 $ billion dollars.

Table 72 GDP for Newland Based on Table 7

Table 72
GDP for Newland Based on Table 7