(GDP figures are in billions of dollars.) Refer to the above table. What was real GDP in Year 2?

Question

(GDP figures are in billions of dollars.)  Refer to the above table. What was real GDP in Year 2?

Quizplus · Accepted Answer

Real GDP is the GDP adjusted for inflation. Using the given GDP deflator for Year 2 (110), we can calculate the real GDP as follows: Real GDP = Nominal GDP / GDP Deflator * 100. Thus, Real GDP in Year 2 = 5,060 / 110 * 100 = $4,909.09 billion, which rounds to $4,911 billion. Therefore, the answer is choice C.

(GDP Figures Are in Billions of Dollars