Which of the following statements is true?
A) Nominal GDP = (price index $\div$ real GDP)$\times$ 100
B) Nominal GDP = (real GDP $\div$ price index)$\times$ 100
C) Real GDP = (price index $\div$ nominal GDP)$\times$ 100
D) Real GDP = (nominal GDP $\div$ price index)$\times$ 100
E) Price index = (real GDP $\div$ nominal GDP)$\times$ 100

Question

Which of the following statements is true?
A) Nominal GDP = (price index $\div$  real GDP)$\times$ 100
B) Nominal GDP = (real GDP $\div$  price index)$\times$ 100
C) Real GDP = (price index $\div$  nominal GDP)$\times$ 100
D) Real GDP = (nominal GDP $\div$  price index)$\times$ 100
E) Price index = (real GDP $\div$  nominal GDP)$\times$ 100

Quizplus · Accepted Answer

Real GDP is calculated by dividing the nominal GDP by the price index (then multiplied by 100 to adjust for percentage form), which corrects for inflation and gives a more accurate measure of economic output.

Which of the Following Statements Is True? A) Nominal GDP ÷\div÷

Which of the Following Statements Is True?
A) Nominal GDP $\div$