The nominal gross domestic product (GDP) in the United States in 2013 was $10,000 billion, but the real GDP was only $9,000. It follows that the price index in 2013 was equal to _____.

Question

The nominal gross domestic product (GDP) in the United States in 2013 was $10,000 billion, but the real GDP was only $9,000. It follows that the price index in 2013 was equal to _____.​

Quizplus · Accepted Answer

The price index is calculated as (Nominal GDP / Real GDP) * 100. So, for 2013, it would be ($10,000 billion / $9,000 billion) * 100 = 111.

The Nominal Gross Domestic Product (GDP) in the United States