Assume a nation's Nominal GDP is 15 Trillion with an inflation rate of 35%. Find its Real GDP.

A. 11.1 Trillion
B. 14.9 Trillion
C. 13.8 Trillion

Question

03-02-2017
Computers and Technology

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Assume a nation's Nominal GDP is 15 Trillion with an inflation rate of 35%. Find its Real GDP.

A. 11.1 Trillion
B. 14.9 Trillion
C. 13.8 Trillion

Respuesta :

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scme1702 scme1702 · Answer 1 · 2017-02-10T12:17:27+01:00

scme1702 scme1702

10-02-2017

The formula for the relationship between real and nominal GDP is:
Real GDP = Nominal GDP / Deflator
Real GDP = 15 trillion / (1 + 0.35)
Real GDP = 11.1 trillion

The answer is A.

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Assume a nation's Nominal GDP is 15 Trillion with an inflation rate of 35%. Find its Real GDP. A. 11.1 Trillion B. 14.9 Trillion C. 13.8 Trillion

Respuesta :

Otras preguntas

Assume a nation's Nominal GDP is 15 Trillion with an inflation rate of 35%. Find its Real GDP.

A. 11.1 Trillion
B. 14.9 Trillion
C. 13.8 Trillion