For each of the following values of nominal GDP and real GDP, calculate the GDP price index
a. Nominal GDP = $600; real GDP = $800.
b. Nominal GDP = $900; real GDP = $900.
c. Nominal GDP = $1,200; real GDP = $1,000.
a. The GDP price index equals ($600 ÷ $800 ) × 100, which is 75.
b. The GDP price index equals ($900 ÷ $900 ) × 100, which is 100.
c. The GDP price index equals ($1,200 ÷ $1,000 ) × 100, which is 120.
Economics
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