Given a GDP inflator of 120 and a Nominal GDP of 7.8 billion dollars, calculate Real GDP.(1 point)

To calculate the Real GDP using the nominal GDP and the GDP deflator, you can use the following formula:

\[ \text{Real GDP} = \frac{\text{Nominal GDP}}{\text{GDP Deflator}} \times 100 \]

Given:

• Nominal GDP = 7.8 billion dollars
• GDP Deflator = 120

Now, plug the values into the formula:

\[ \text{Real GDP} = \frac{7.8 \text{ billion}}{120} \times 100 \]

Calculating that:

\[ \text{Real GDP} = \frac{7.8}{120} \times 100 = 6.5 \text{ billion dollars} \]

Therefore, the correct answer is:

6.5 billion dollars