Use the following to answer questions .
Exhibit: Long-run Equilibrium
-(Exhibit: Long-run Equilibrium) If the real GDP is $7,000 billion and the implicit price deflator is 1.16, what is the value of nominal GDP?
A) $6,034 billion
B) $8,120 billion
C) $9,120 billion
D) cannot be determined from the information given

Question

Use the following to answer questions .
Exhibit: Long-run Equilibrium 
-(Exhibit: Long-run Equilibrium) If the real GDP is $7,000 billion and the implicit price deflator is 1.16, what is the value of nominal GDP?
A) $6,034 billion 
B) $8,120 billion 
C) $9,120 billion 
D) cannot be determined from the information given

Quizplus · Accepted Answer

Nominal GDP is calculated by multiplying real GDP by the implicit price deflator. So, $7,000 billion * 1.16 = $8,120 billion.

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