If nominal gross domestic product (GDP)for a particular year is $6 trillion and real gross domestic product (GDP)for that year is $5 trillion,then the GDP price index for that year is _____.
A)1.2
B)17
C)20
D)83
E)120

Question

If nominal gross domestic product (GDP)for a particular year is $6 trillion and real gross domestic product (GDP)for that year is $5 trillion,then the GDP price index for that year is _____.
A)1.2
B)17
C)20
D)83​
E)120

Quizplus · Accepted Answer

The GDP price index is calculated by dividing the nominal GDP by the real GDP and then multiplying by 100. So, in this case, it would be ($6 trillion / $5 trillion) * 100 = 120.

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