If the estimated current dollar GDP is $5,616 billion while real GDP is $4,129 billion,then the prices of goods and services have risen by what percentage from their base-year levels?

Question

Quizplus · Accepted Answer

In order to calculate the percentage change in prices from the base year, we need to use the formula: 
Price level = (Nominal GDP / Real GDP) x 100%

Plugging in the values given: 
Price level = (5616 / 4129) x 100% 
Price level = 1.361 x 100%
Price level = 136.1%
Therefore, the prices of goods and services have risen by 36 percent (136.1% - 100%) from their base-year levels.

If the Estimated Current Dollar GDP Is $5,616 Billion While