Question

Calculate the real capital stock GDP.

Answer 1

To calculate the real capital stock GDP, divide the nominal GDP by the GDP deflator using the formula Real GDP = Nominal GDP / GDP Deflator.

Step-by-step explanation:

To calculate the real capital stock GDP, you need to use the formula:

Real GDP = Nominal GDP / GDP Deflator

Step 1. Look at the table provided to find the nominal GDP and the GDP deflator for a specific year. For example, in 1960, the nominal GDP is $543.3 billion and the GDP deflator is 19.0.

Step 2. Plug the values into the formula: Real GDP = $543.3 billion / 19.0 = $28.6 billion. This gives you the real GDP for 1960.

Step 3. Repeat this calculation for each year from 1960 to 2010 using the respective values from the table.