Figure 7-2
-Refer to Figure 7-2. If the real GDP is $7,000 billion and the implicit price deflator is 1.08, what is the value of nominal GDP?
A) $6,481 billion
B) $7,000 billion
C) $7,560 billion
D) cannot be determined from the information given

Question

Figure 7-2 
-Refer to Figure 7-2. If the real GDP is $7,000 billion and the implicit price deflator is 1.08, what is the value of nominal GDP?
A) $6,481 billion 
B) $7,000 billion 
C) $7,560 billion 
D) cannot be determined from the information given

Quizplus · Accepted Answer

Nominal GDP = Real GDP x Price Level
Nominal GDP = $7,000 billion x 1.08
Nominal GDP = $7,560 billion

Figure 7-2 -Refer to Figure 7-2. If the Real GDP Is $7,000