In the first quarter of 2010, nominal GDP was $14,592.3 billion and the GDP deflator was 110.2. Real GDP for the first quarter of 2010, then, was equal to
A) $13,103.9 billion.
B) $13,133.1 billion.
C) $13,241.7 billion.
D) $13,424.9 billion.

Question

Quizplus · Accepted Answer

Real GDP is calculated by dividing nominal GDP by the GDP deflator and then multiplying by 100. So, $14,592.3 billion / 110.2 * 100 = $13,241.7 billion.

In the First Quarter of 2010, Nominal GDP Was $14,592