The Real GDP formula in terms of Nominal GDP and GDP Deflator is:

A(Nominal GDP / GDP Deflator) × 100

B(Nominal GDP × GDP Deflator) / 100

C(GDP Deflator / Nominal GDP) × 100

D(Nominal GDP - Inflation) × 100

Explanation

Real GDP adjusts nominal output for price changes: Real GDP = (Nominal GDP / GDP Deflator) × 100.

Submitted by: mcqstutor Team More Economics MCQs →