If we want to calculate the Mexican real GDP in U.S. dollars but adjusted for prices, we use the following:

E) None of these answers are correct.

Question

If we want to calculate the Mexican real GDP in U.S. dollars but adjusted for prices, we use the following:

E) None of these answers are correct.

Quizplus · Accepted Answer

The formula for calculating the Mexican real GDP in U.S. dollars but adjusted for prices is:$\text { Real } \mathrm { GDP } _ { \mathrm { MEX } } ^ { \mathrm { U } \text {.S. prices } } = \frac { \text { Price level } _ { \mathrm { US } } } { \text { Price level } } \times \text { Nominal } _ { \mathrm { MEX } } \mathrm { GDP } _ { \mathrm { MEX } }$This formula takes into account the difference in price levels between the two countries, so that the real GDP is expressed in terms of the purchasing power of the U.S. dollar.

If We Want to Calculate the Mexican Real GDP in U.S