Suppose the nominal GDP is currently $5.4 trillion, and suppose GDP is $3.6 trillion in terms of this year's purchasing power.What is the GDP price index?

Question

Quizplus · Accepted Answer

The GDP price index is calculated as the ratio of nominal GDP to real GDP (measured in terms of constant prices).

GDP price index = (Nominal GDP / Real GDP) x 100

Substituting the given values:

GDP price index = (5.4 trillion / 3.6 trillion) x 100 = 150

Therefore, the GDP price index is 150.

Suppose the Nominal GDP Is Currently $5