If in some year real gdp was $5 trillion and the gdp deflator was 200, what was nominal gdp?

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Business

Quinten Howe

17 July, 08:28

If in some year real gdp was $5 trillion and the gdp deflator was 200, what was nominal gdp?

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Sarai Dunn · Answer 1

Real GDP = $5 trillion

GDP deflator = 200

The nominal GDP is $10 trillion.

Real GDP is the output effected by price. GDP deflator is the measure of the level prices of the new, local products produced, final goods and services within the economy. The nominal GDP is the current market prices.