If money GDP were $10.0 trillion in a particular year, and the GDP price index number were 125.0 for that year, then real GDP would be:
A) $8.00 trillion.
B) $8.75 trillion.
C) $11.25 trillion.
D) $12.5 trillion.

Question

Quizplus · Accepted Answer

Real GDP is calculated by dividing the nominal (or money) GDP by the GDP deflator (price index) and then multiplying by 100. In this case, real GDP = ($10.0 trillion / 125.0) * 100 = $8.00 trillion.

If Money GDP Were $10