Suppose that in 2018, nominal Gross Domestic Product (GDP) for the economy of Chiconia was $10 trillion and the Gross Domestic Product (GDP) price index was 200.0. What is Chiconia's real Gross Domestic Product (GDP) in 2018?

Question

Quizplus · Accepted Answer

Real GDP is calculated by dividing the nominal GDP by the GDP deflator (price index) and then multiplying by 100. So, for Chiconia, real GDP = ($10 trillion / 200) * 100 = $5 trillion.

Suppose That in 2018, Nominal Gross Domestic Product (GDP) for the Economy