If a small country has current nominal GDP of $30 billion and the GDP deflator is 40,what is its real GDP?
A) $8 billion
B) $40 billion
C) $75 billion
D) $100 billion

Name: If a small country has current nominal GDP of $30 billion and the GDP deflator is 40,what is its real GDP? A) $8 billion B) $40 billion C) $75 billion D) $100 billion
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Question

Quizplus · Accepted Answer

Real GDP is calculated by dividing nominal GDP by the GDP deflator (expressed as a ratio, not a percentage). So, $30 billion / 0.4 = $75 billion.

If a Small Country Has Current Nominal GDP of $30