If nominal GDP was $10 trillion and the GDP deflator was 125, real GDP would be
A) $80 billion ($.08 trillion).
B) $1250 trillion.
C) $9.75 trillion.
D) $8 trillion.

Name: If nominal GDP was $10 trillion and the GDP deflator was 125, real GDP would be A) $80 billion ($.08 trillion). B) $1250 trillion. C) $9.75 trillion. D) $8 trillion.
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Quizplus · Accepted Answer

Real GDP is calculated by dividing nominal GDP by the GDP deflator (then multiplied by 100). So, $10 trillion / 1.25 = $8 trillion.

If Nominal GDP Was $10 Trillion and the GDP Deflator