Which of the following statements is true?
A) Nominal GDP = (price index ÷real GDP)×100
B) Nominal GDP = (real GDP÷price index)× 100
C) Real GDP = (price index ÷ nominal GDP)× 100
D) Real GDP = (nominal GDP ÷price index)× 100
E) Price index = (real GDP÷ nominal GDP)×100

Question

Quizplus · Accepted Answer

The formula for calculating real GDP from nominal GDP is by dividing the nominal GDP by the price index and multiplying the result by 100. Therefore, Real GDP = (nominal GDP ÷ price index)× 100.

Which of the Following Statements Is True