ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If the price index in a country were 100 for the year 2000 and 120 for the year 2003 and nominal gross domestic product in 2003 were $480 billion, then real gross domestic product for 2003 in 2000 dollars would be
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About $360 billion
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About $380 billion
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About $400 billion
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About $600 billion
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Indeterminate with the given information
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Explanation:
Detailed explanation-1: -If the price index in a country were 100 for the year 2000 and 120 for 2003 and nominal gross domestic product in 2003 were $480 billion, then real gross domestic product for 2003 in 2000 dollars would be? 120-100/100 (x100) = 480/1.2 = 400Billion is real GDP.
Detailed explanation-2: -When Nominal Gross Domestic Product is 840 crores and price index is 120, then the Real Gross Domestic Prwill be: b. 900 crores.
Detailed explanation-3: -The price index can then be calculated by dividing the nominal GDP by the real GDP. So if gasoline was $3 per gallon in 2010, then the price index = 3 / 2 × 100 =150.
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