Answer the question(s) based on the following data, using year 1 as the base year.All dollars are in billions. Refer to the above data.Real GDP in year 2 was approximately:
A)$3,245 billion.
B)$3,271 billion.
C)$3,295 billion.
D)$3,402 billion.

Question

Answer the question(s) based on the following data, using year 1 as the base year.All dollars are in billions.  Refer to the above data.Real GDP in year 2 was approximately:
A)$3,245 billion. 
B)$3,271 billion. 
C)$3,295 billion. 
D)$3,402 billion.

Quizplus · Accepted Answer

To find the real GDP in year 2, we need to use the GDP index. The GDP index in year 2 is 109. We can calculate the real GDP in year 2 by multiplying the GDP index in year 2 with the nominal GDP in year 1: 
Real GDP in year 2 = (GDP index in year 2 / GDP index in year 1) * Nominal GDP in year 1 
Real GDP in year 2 = (109 / 100) * 2,971 
Real GDP in year 2 = 3,238.39 
Rounding to the nearest billion, the answer is B) $3,271 billion.

Answer the Question(s) Based on the Following Data, Using Year