Question

The GDP is $123.7 million. The inflation rate is 2.7 percent. Find the real GDP.

O
$110,360,100
O
$12,036,010
O
$123,660,100
O
$120,360,100
Help

Answer 1

120,360,100

Explanation:

This question is asking about what the GDP of a country is, if you took away the rate of inflation, which is 2.7%. So, what is going to be done is subtracting 2.7% from 123,700,000.

Here are the steps to do so.

1. Multiply 123,700,000 by 2.7% or .0027 (because if you want to take off the percent, you move the decimal back TWICE.), and you get 3,339,900. What this does is give you 2.7% of the inflated GDP of 123,700,000. By multiplying, you are taking off the value given for the inflation.

2. Subtract 3,339,900 from 123,700,000, to get the GDP without the inflation.

And you get 120,360,100.

It's that simple, just the question was worded weird, but I hope this helps!