If the GDP deflator is 400 and nominal GDP is $2 trillion, what is real GDP?
A) $5 billion
B) $200 billion
C) $500 billion
D) $2 trillion

Name: If the GDP deflator is 400 and nominal GDP is $2 trillion, what is real GDP? A) $5 billion B) $200 billion C) $500 billion D) $2 trillion
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Quizplus · Accepted Answer

Real GDP can be calculated by dividing nominal GDP by the GDP deflator. Therefore, real GDP = nominal GDP/GDP deflator = $2 trillion/400 = $500 billion.

If the GDP Deflator Is 400 and Nominal GDP Is