Question

Nominal GDP is some year is $15 trillion. Real GDP in that same year is $11 trillion. What is the value of the GDP price index in that year?
Select one:
a. 152
b.136
c. 200
d. 375

Answer 1

Answer:

Value of the GDP price index in that year would be Option B: 136.

Explanation:

To compute the value of GDP, goods and services are valued at market prices. To determine real GDP, the nominal GDP is divided by the price index divided by 100.

The 'Gross Domestic Product' price index which means the prices of U.S. goods and services exported to other countries.

Thus to calculate the GDP price index we divide the nominal GDP by the real GDP. So, we divide $15 trillion by $ 11 trillion.

15/11 * 100 = 136.36

Thus, answer is Option B, 136.