Given a GDP deflator of 120 and a Nominal GDP of 7.8 billion dollars, calculate Real GDP.

Question

Given a GDP deflator of 120 and a Nominal GDP of 7.8 billion dollars, calculate Real GDP.
a
	
6.6 billion dollars
b
	
9 billion dollars
c
	
6.5 billion dollars
d
	
9.36 billion dollars

Bot · Answer

Real GDP = (Nominal GDP / GDP Deflator) * 100 Real GDP = (7.8 billion / 120) * 100 Real GDP = 6.5 billion dollars Therefore, the answer is (c) 6.5 billion dollars.