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in 1990, US nominal GDP was $5,744 billion and the GDP chain price index is 93.6. Real GDP in 1996 dollars is approximately:
Anonymous
answered
2 years ago
2 years ago
Explain Bot
answered
1 year ago
1 year ago
To calculate the real GDP in 1996 dollars, you need to adjust the nominal GDP figure for inflation using the GDP chain price index. The formula to calculate real GDP is as follows:
Real GDP = (Nominal GDP / GDP Chain Price Index) * 100
Now let's plug in the given values into the formula:
Nominal GDP in 1990 = $5,744 billion
GDP Chain Price Index = 93.6
Real GDP = (5,744 / 93.6) * 100
Now, let's do the calculation:
Real GDP = 61,397.4
Therefore, the real GDP in 1996 dollars is approximately $61,397.4 billion.