Real GDP can be calculated using which of the following formulas?

Question

Quizplus · Accepted Answer

The correct formula to calculate real GDP is to divide nominal GDP by the GDP implicit price deflator. This takes into account the effects of inflation on the economy and gives a more accurate representation of economic growth. Choice A is incorrect because it uses nominal GDP in the calculation, which doesn't take into account inflation. Choice B is incorrect because it uses the GDP chain price index, which is not the same as the GDP implicit price deflator. Choice D is incorrect because it divides nominal GDP by the inflation rate, which is not the same as using the GDP implicit price deflator.

Real GDP Can Be Calculated Using Which of the Following