(GDP figures are in billions of dollars.) ]
Refer to the above table.What is the GDP price index in Year 1?
A)105.2
B)108.3
C)109.6
D)111.5

Question

(GDP figures are in billions of dollars.)  ]
Refer to the above table.What is the GDP price index in Year 1?
A)105.2 
B)108.3 
C)109.6 
D)111.5

Quizplus · Accepted Answer

The GDP price index in a given year is calculated by dividing the nominal GDP for that year by the real GDP for that year (which has been adjusted for inflation using a base year). In this case, the nominal GDP for Year 1 is $5,000 and the real GDP for Year 1, using Year 0 as the base year, is $4,620. Therefore, the GDP price index for Year 1 is 108.3 ($5,000 divided by $4,620).

(GDP Figures Are in Billions of Dollars