Given a GDP deflator of 120 and a Nominal GDP of 7.8 billion dollars, calculate Real GDP.(1 point)
Responses
6.5 billion dollars
6.5 billion dollars
9.36 billion dollars
9.36 billion dollars
9 billion dollars
9 billion dollars
6.6 billion dollars
To calculate the Real GDP, divide the Nominal GDP by the GDP deflator:
Real GDP = Nominal GDP / GDP deflator
Real GDP = 7.8 billion dollars / 120
Real GDP = 6.5 billion dollars
Therefore, the correct answer is:
6.5 billion dollars
To calculate Real GDP, we need to divide the Nominal GDP by the GDP deflator and multiply it by 100.
Real GDP = (Nominal GDP / GDP deflator) * 100
Real GDP = (7.8 billion dollars / 120) * 100
Real GDP = 0.065 billion dollars * 100
Real GDP = 6.5 billion dollars
Therefore, the correct answer is 6.5 billion dollars.
To calculate Real GDP, we need to use the formula:
Real GDP = Nominal GDP / GDP deflator
In this case, the Nominal GDP is given as 7.8 billion dollars and the GDP deflator is given as 120.
Substituting these values into the formula, we get:
Real GDP = 7.8 billion dollars / 120
Calculating this, we find:
Real GDP = 0.065 billion dollars
Therefore, the correct answer is 6.5 billion dollars.