GDP is $10 trillion in 2001.The GDP deflator is 100 in 2000 and is 110 in 2001.What is real GDP?

Name: GDP is $10 trillion in 2001.The GDP deflator is 100 in 2000 and is 110 in 2001.What is real GDP?
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Quizplus · Accepted Answer

Real GDP can be calculated using the formula Real GDP = Nominal GDP / GDP Deflator. In this case, nominal GDP is $10 trillion and the GDP deflator is 110 (in 2001), which gives us Real GDP = $10 trillion / 1.1 = $9.09 trillion. Therefore, the correct answer is (C) $9.09 trillion.

GDP Is $10 Trillion in 2001