The formula for calculating real GDP is:
A) (money GDP - GDP price index number) x 100.
B) (money GDP / GDP price index number) x 100.
C) (money GDP x GDP price index number) /100.
D) (GDP price index number / money GDP) x 100.

Question

Quizplus · Accepted Answer

The correct formula for calculating real GDP is to divide the nominal (or "money") GDP by the GDP price index (expressed as a number, not a percentage), and then multiply by 100. This adjusts nominal GDP for changes in price level, giving a measure of the economy's output in real terms.

The Formula for Calculating Real GDP Is