Assuming a nominal GDP of $2 billion and a GDP deflator of 170, real GDP must be about:
A) $3.4 billion.
B) $1.2 billion.
C) $0.3 billion.
D) $3.7 billion.

Name: Assuming a nominal GDP of $2 billion and a GDP deflator of 170, real GDP must be about: A) $3.4 billion. B) $1.2 billion. C) $0.3 billion. D) $3.7 billion.
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Quizplus · Accepted Answer

Real GDP is calculated by dividing the nominal GDP by the GDP deflator (then multiplied by 100). So, $2 billion / 1.7 = $1.176 billion, which is approximately $1.2 billion.

Assuming a Nominal GDP of $2 Billion and a GDP