With a GDP deflator of 240 and real GNP of $1.8 billion, nominal GDP must be:
A) $4.32 billion.
B) $5.2 billion.
C) $0.6 billion.
D) $3.9 billion.

Name: With a GDP deflator of 240 and real GNP of $1.8 billion, nominal GDP must be: A) $4.32 billion. B) $5.2 billion. C) $0.6 billion. D) $3.9 billion.
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Question

Quizplus · Accepted Answer

The GDP deflator is used to convert real GDP into nominal GDP. The formula is Nominal GDP = Real GDP * (GDP Deflator / 100). Plugging in the numbers: $1.8 billion * (240 / 100) = $4.32 billion.

With a GDP Deflator of 240 and Real GNP of $1.8