Question

Which of the following is the correct way to calculate real GDP?

Answer 1

The formula for real GDP is nominal GDP divided by the deflator:

R = N/D.

For example, real GDP was $17.096 trillion in 2017. The nominal GDP was $19.391 trillion. The deflator was 1.13421.

$17.096 trillion = $19.391 trillion / 1.13421.