Suppose that in 1998, nominal GDP in Liveria is $4,500 billion. If the GDP deflator is 150, real GDP in 1998 is:

Name: Suppose that in 1998, nominal GDP in Liveria is $4,500 billion. If the GDP deflator is 150, real GDP in 1998 is:
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Question

Quizplus · Accepted Answer

Real GDP can be calculated by dividing nominal GDP by the GDP deflator and multiplying by 100:
Real GDP = (Nominal GDP/GDP deflator) * 100
Real GDP = (4500/150) * 100
Real GDP = 3000 billion
Therefore, option B is correct.

Suppose That in 1998, Nominal GDP in Liveria Is $4,500