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28 February, 23:59

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

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Answers (1)
  1. 1 March, 00:26
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    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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