If the nominal gross domestic product (GDP)for a particular year is $4 trillion and the real GDP for that year is $3 trillion,then the GDP price index is 133.

Question

Quizplus · Accepted Answer

GDP price index (also known as the GDP deflator) is calculated by dividing nominal GDP by real GDP and multiplying by 100.

Therefore, GDP price index = (nominal GDP/real GDP) x 100
= (4 trillion/3 trillion) x 100
= 133.33
Rounded to the nearest whole number, the GDP price index is 133.

So, the statement is true.

If the Nominal Gross Domestic Product (GDP)for a Particular Year