If the nominal gross domestic product (GDP)for the year 2000 was $6.2 trillion and the price index was 200,the real gross domestic product (GDP)for 2000 was _____.
A)$3.1 trillion
B)$6.2 trillion
C)$12.4 trillion
D)$18.6 trillion
E)$24.3 trillion

Question

Quizplus · Accepted Answer

Real GDP is calculated by dividing nominal GDP by the price index (in base year prices). Therefore, real GDP for 2000 would be:
Real GDP = Nominal GDP / Price Index
Real GDP = $6.2 trillion / 200
Real GDP = $31 billion
Note: It's important to pay attention to the units of measurement. The question provides the nominal GDP in trillions, but the answer choices are in billions. Therefore, the answer should be $3.1 trillion, not $31 billion.

If the Nominal Gross Domestic Product (GDP)for the Year 2000