Real gross domestic product (GDP)can be calculated as
A) (nominal GDP)* (the GDP deflator)* 100.
B) (nominal GDP)/ (the GDP deflator)* 100.
C) (nominal GDP)- (the GDP deflator)* 100.
D) (the GDP deflator)/ (nominal GDP)*100.
E) (nominal GDP)* (the long-run trend growth rate of GDP)* 100.

Question

Quizplus · Accepted Answer

Real GDP is calculated by adjusting nominal GDP for changes in prices using the GDP deflator. The correct formula is: (nominal GDP) / (GDP deflator) x 100. Option B correctly represents this formula.

Real Gross Domestic Product (GDP)can Be Calculated as