If nominal Gross Domestic Product (GDP) in 2005 was $500 billion with a price index of 100, what would be the real Gross Domestic Product (GDP) in 2013 if the 2013 nominal Gross Domestic Product (GDP) was $900 billion and the 2013 price index was 140?

Question

Quizplus · Accepted Answer

To find the real GDP in 2013, we need to use the formula:

Real GDP = Nominal GDP / Price Index (in hundredths)

So, Real GDP in 2013 = $900 billion / 140 = $6.43 billion (in billions, since we are using hundredths in the formula)

Therefore, the answer is D) $643 billion.

If Nominal Gross Domestic Product (GDP) in 2005 Was $500