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

Question

Responses

6.5 billion dollars
6.5 billion dollars

9.36 billion dollars
9.36 billion dollars

9 billion dollars
9 billion dollars

6.6 billion dollars

Answer 1

To calculate the Real GDP, divide the Nominal GDP by the GDP deflator:

Real GDP = Nominal GDP / GDP deflator

Real GDP = 7.8 billion dollars / 120

Real GDP = 6.5 billion dollars

Therefore, the correct answer is:

6.5 billion dollars