What is real GDP in 2014 dollars if nominal GDP in 2014 is $15,000 billion, the GDP deflator in 2014 is 110, and the GDP deflator in 2010 was 100?
A) $9, 100 billion
B) $13,636 billion
C) $14,010 billion
D) $16, 500 billion

Question

Quizplus · Accepted Answer

Real GDP is calculated by dividing nominal GDP by the GDP deflator (in decimal form) and then multiplying by 100. So, $15,000 billion / 1.10 = $13,636 billion.

What Is Real GDP in 2014 Dollars If Nominal GDP