Suppose that 1986 is our base year (price index equals 100)and that the 2000 price index was 200.If nominal GDP was $6.2 trillion in 2000,what was real GDP that year (measured in 1986 dollars)?
A)$3.1 trillion
B)$6.2 trillion
C)$12.4 trillion
D)$18.6 trillion
E)$24.3 trillion

Question

Quizplus · Accepted Answer

To calculate the real GDP, we need to use the formula Real GDP = Nominal GDP / Price Index * 100. Plugging in the values, we get Real GDP = 6.2 trillion / 200 * 100 = 3.1 trillion in 1986 dollars. Therefore, the correct answer is (A).

Suppose That 1986 Is Our Base Year (Price Index Equals