If nominal GDP in 1992 was $3,000 billion,and the price level index was 330 (1977 = 100),then real GDP in terms of the price level in 1977 was about
A)$105 billion.
B)$4,220 billion.
C)$909 billion.
D)$537 billion.

Question

Quizplus · Accepted Answer

Calculating the real GDP involves adjusting nominal GDP for inflation using a price index. In this case, we are given the price level index for 1992 as 330 (1977=100).

To calculate real GDP in terms of the 1977 price level, we need to divide nominal GDP by the price level index and then multiply by 100.

Real GDP = (Nominal GDP / Price level index) * 100
Real GDP = (3,000 billion / 330) * 100
Real GDP = 9,090.909 billion

Therefore, real GDP in terms of the price level in 1977 was about $909 billion.

If Nominal GDP in 1992 Was $3,000 Billion,and the Price