The table below shows total output for an economy over 2 years.
TABLE 20-8
-Refer to Table 20-8.The real GDP in 2015,expressed in 2014 prices,was

Question

The table below shows total output for an economy over 2 years.
  TABLE 20-8
-Refer to Table 20-8.The real GDP in 2015,expressed in 2014 prices,was

Quizplus · Accepted Answer

To calculate the real GDP in 2015 in 2014 prices, we need to use the GDP deflator. The GDP deflator in 2015 is 140 (nominal GDP in 2015 divided by real GDP in 2015, multiplied by 100). Therefore, the real GDP in 2015 in 2014 prices is calculated as follows: Real GDP in 2015 = Nominal GDP in 2015 / GDP deflator in 2015 * GDP deflator in 2014 = 2100 / 140 * 120 = $1,260.

The Table Below Shows Total Output for an Economy Over