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

Question

Quizplus · Accepted Answer

Real GDP is calculated by adjusting nominal GDP using the GDP deflator, which accounts for changes in price levels. The formula involves dividing the GDP deflator in the base year by the GDP deflator in the current year to adjust for inflation.

Real GDP Equals Nominal GDP Multiplied by the