In an economy, Nominal GDP for year 2005 (base year = 1996) is $60 billion and the GDP deflator 2005 (base year = 1996) is 120. Calculate the Real GDP for 2005.
Added by Luisa G.
Step 1
It's a measure of the level of prices of all new, domestically produced, final goods and services in an economy. The formula to calculate Real GDP is: Real GDP = Nominal GDP / GDP Deflator * 100 Show more…
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Fill in the blanks: $$\begin{array}{lccc} \text { Year } & \begin{array}{c} \text { Real GDP (in } \\ \text { 2000 dollars) } \end{array} & \begin{array}{c} \text { Nominal GDP } \\ \text { (in current } \\ \text { dollars) } \end{array} & \begin{array}{c} \text { GDP deflator } \\ \text { (base year } \\ \text { 2000) } \end{array} \\ \hline 1970 & 3,000 & 1,200 & -\\ 1980 & 5,000 & - & 60 \\ 1990 & - & 6,000 & 100 \\ 2000 & - & 8,000 &- \\ 2010 & - & 15,000 & 200 \\ 2020 & 10,000 & - & 300 \\ 2030 & 20,000 & 50,000 & - \\ \hline \end{array}$$
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