Question

A country has nominal GDP equal to $204.31 billion in 2018. The GDP deflator in 2018 has a value of 112.64. What was the value of real GDP, in billions of dollars. Round to two decimal places. If your answer is 3.2 billion then just enter 3.2.

Answer 1

$181.38 billion

Step-by-step explanation:

The computation of the value of the real GDP is shown below:

As we know that

Real GDP = (Nominal GDP ÷ GDP Deflator) × 100

= ($204.31 billion ÷ 112.64) × 100

= $181.38 billion

Hence, the value of real GDP is $181.38 billion

We simply applied the above formula so that the correct value could come

And, the same is to be considered