Given a GDP inflator 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 6.6 billion dollars 6.6 billion dollars 9 billion dollars

Question

Given a GDP inflator 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 6.6 billion dollars 6.6 billion dollars 9 billion dollars

Answer 1

6.5 billion dollars

To calculate Real GDP, divide the Nominal GDP by the GDP inflator:

Real GDP = Nominal GDP / GDP inflator
Real GDP = 7.8 billion / 1.20
Real GDP = 6.5 billion dollars