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
Whats the right answer
The correct answer is 6.5 billion dollars.
To calculate Real GDP, you can use the following formula:
Real GDP = (Nominal GDP / GDP Deflator) * 100
Given a GDP deflator of 120 and a Nominal GDP of 7.8 billion dollars, let's calculate Real GDP:
Real GDP = (7.8 billion / 120) * 100
Real GDP ≈ 6.5 billion dollars
Therefore, the correct answer is that the Real GDP is approximately 6.5 billion dollars.
The correct answer is 6.5 billion dollars.
To calculate Real GDP, you need to divide Nominal GDP by the GDP deflator and multiply it by 100. In this case, the Nominal GDP is 7.8 billion dollars and the GDP deflator is 120.
The formula to find Real GDP is: Real GDP = (Nominal GDP / GDP deflator) * 100
Calculating Real GDP:
Real GDP = (7.8 billion dollars / 120) * 100
Real GDP = 0.065 * 100
Real GDP = 6.5 billion dollars
Therefore, the correct answer is 6.5 billion dollars.