Question

Consider the following data, where gross domestic product (GDP) values are measured in millions of dollars, to answer the following questions: Year Nominal GDP Real GDP GDP Deflator 2009 ________ $500 100 2010 $551.2 ________ 106 2011 $600.6 $546 ________ 2012 ________ $600.6 120 What is the value of nominal gross domestic product (GDP) in 2009?'a. $600 million b. $50,000 million c. $400 million d. $500 million e. $100 million

Answer 1

Answer: D - $500 million

Explanation: The Nominal GDP is the changes in the market prices due to inflation or deflation.

The Formula for the calculation is:

GDP Deflator = Nominal GDP/Real GDP * 100

100= N GDP/500,000,000 * 100

N GDP = $500,000,000