(GDP figures are in billions of dollars.) ]
Refer to the above table.What is the GDP price index in Year 1?
A)105.2
B)108.3
C)109.6
D)111.5

Question

(GDP figures are in billions of dollars.)  ]
Refer to the above table.What is the GDP price index in Year 1?
A)105.2 
B)108.3 
C)109.6 
D)111.5

Quizplus · Accepted Answer

The GDP price index is calculated by dividing nominal GDP by real GDP and multiplying by 100. In Year 1, nominal GDP is $15,500 billion and real GDP is $14,320 billion (calculated by using 2005 as the base year). Therefore, the GDP price index is [($15,500/$14,320) x 100] = 108.3.

(GDP Figures Are in Billions of Dollars