3-2a Practice Computing REAL GDP
You can do this assignment multiple times as practice. Your best attempt will count as your grade.
Nominal GDP is simply output times the price of that output. Usually, we just add up C+Ig+G+Xn, but it is essentially price times the output produced.
Real GDP is a measure of output without the intrusion of inflation causing that output to grow. In other words, we can remove the inflation that is inherent in nominal GDP to get REAL GDP. Real GDP is important in comparing how an economy is doing from year to year. To find real GDP, you take the nominal GDP and divide by the GDP Index, then multiply that answer by 100.
We will explore the GDP Index, also known as a GDP Deflator, in another exercise. For this assignment, I just want you to practice computing real GDP with the given parameters.
Remember:
Nominal GDP = C+Ig+G+Xn
Real GDP = (Nominal GDP/GDP Deflator)*100
Round all of your answers to the nearest penny. Do not use $ signs or % signs or commas (,). For example, enter 1234.56 if that is the answer.
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