Table 12-9

-Refer to Table 12-9.Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The base year used in calculating real GDP is

Question

Table 12-9
 
-Refer to Table 12-9.Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The base year used in calculating real GDP is

Quizplus · Accepted Answer

Real GDP is calculated by adjusting nominal GDP for inflation using a base year. In this table, the values for nominal and real GDP are given for the years 2008-2011. To determine the base year used in calculating real GDP, look for the year where the nominal GDP is the same as the real GDP. In this case, that occurs in 2009, indicating that 2009 is the base year used in calculating real GDP. Therefore, the answer is B.

Table 12-9 -Refer to Table 12-9.Consider the Following Data on Nominal GDP