Exhibit 11-6 Use the table below to answer the following question(s). $$\begin{array} { | l | c | c | }
\hline \text { Year } & \begin{array} { c }
\text { Nominal GDP } \
\text { (billions) }
\end{array} & \begin{array} { c }
\text { GDP } \
\text { deflator }
\end{array} \
\hline \text { Year 1 } & 600 & 100.0 \
\text { Year 2 } & 1,000 & 133.3 \
\hline
\end{array}$$ Refer to Exhibit 11-6. Measured in terms of Year 1 prices, real GDP in Year 2 was:

Question

Exhibit 11-6 Use the table below to answer the following question(s). $$\begin{array} { | l | c | c | } 
\hline \text { Year } & \begin{array} { c } 
\text { Nominal GDP } \
\text { (billions) }
\end{array} & \begin{array} { c } 
\text { GDP } \
\text { deflator }
\end{array} \
\hline \text { Year 1 } & 600 & 100.0 \
\text { Year 2 } & 1,000 & 133.3 \
\hline
\end{array}$$ Refer to Exhibit 11-6. Measured in terms of Year 1 prices, real GDP in Year 2 was:

Quizplus · Accepted Answer

Real GDP is calculated by dividing the nominal GDP by the GDP deflator (then multiplying by 100 to adjust for the percentage). For Year 2, this is $ \frac{1000}{133.3} \times 100 = 750 $ billion.

Exhibit 11-6 Use the Table Below to Answer the Following