Suppose that Gross Domestic Product for 2012 is $600 million and the price index for that year (2005 = 100)is 300.GDP for 2012 in constant (2005)dollars is

Name: Suppose that Gross Domestic Product for 2012 is $600 million and the price index for that year (2005 = 100)is 300.GDP for 2012 in constant (2005)dollars is
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To find GDP in constant (2005) dollars, we need to divide the nominal GDP by the price index and then multiply by 100. So, GDP in 2005 dollars = (600 million/300) x 100 = $200,000,000.

Suppose That Gross Domestic Product for 2012 Is $600 Million