(Table 7: GDP and Price Index Data) Table 7 provides data on GDP and price indices for Macroland for four years. What was Macroland's real GDP in 2017 using 2015 prices?
$\begin{array}{l}
\text { Table 7: GDP and Price Index Data }\
\begin{array}{|c|c|c|c|c|}
\hline \text { Year } & 2015 & 2016 & 2017 & 2018 \
\hline \begin{array}{c}
\text { Nominal GDP } \
\text { (billions of dollars) }
\end{array} & \$ 800 & \$ 835 & \$ 890 & \$ 930 \
\hline \text { Price index } & 100 & 106 & 110 & 112 \
\hline
\end{array}
\end{array}$
A) $890
B) $830
C) $788
D) $809

Question

(Table 7: GDP and Price Index Data) Table 7 provides data on GDP and price indices for Macroland for four years. What was Macroland's real GDP in 2017 using 2015 prices?
 $\begin{array}{l}
\text { Table 7: GDP and Price Index Data }\
\begin{array}{|c|c|c|c|c|}
\hline \text { Year } & 2015 & 2016 & 2017 & 2018 \
\hline \begin{array}{c}
\text { Nominal GDP } \
\text { (billions of dollars) }
\end{array} & \$ 800 & \$ 835 & \$ 890 & \$ 930 \
\hline \text { Price index } & 100 & 106 & 110 & 112 \
\hline
\end{array}
\end{array}$
A) $890
B) $830
C) $788
D) $809

Quizplus · Accepted Answer

To find the real GDP for 2017 using 2015 prices, divide the nominal GDP of 2017 by the price index for 2017, then multiply by the price index for 2015. Real GDP = (890 / 110) * 100 = $809 billion.

(Table 7: GDP and Price Index Data) Table 7 Provides