Real GDP in the current year is equal to nominal GDP in the current year multiplied by the
A)GDP deflator.
B)GDP deflator in the base year divided by the GDP deflator in the current year.
C)GDP deflator in the current year divided by the GDP deflator in the base year.
D)consumer price index.

Question

Quizplus · Accepted Answer

Real GDP is calculated by adjusting nominal GDP using the GDP deflator, specifically by dividing the GDP deflator in the base year by the GDP deflator in the current year.

Real GDP in the Current Year Is Equal to Nominal