Question

What was real per capita GDP in 1933 measured in 2013 prices? Use the data in the table below to compute your answer.

Year Nominal GDP Population Nominal per capita GDP Price Index
1933 $ 57 billion 126 million $ 452 100
2013 16,800 billion 301 million 55,814 1,400

Answer 1

The answer is 6,333.33.

The formula for Real per capita GDP is:
R = (N / D) / C
Where: R = Real per capita GDP; N = nominal GDP; D = deflator or Price Index; C = Population

Get first the price index. 1933 price / 2013 price = .07.
Proceed with calculating Real per capita GDP.

R = (N / D) / C
= (57B / .07) / 126M
= 798B / 126M
= 6,333.33