Which of the following calculations will yield the correct measure of real GDP?
A) divide nominal GDP by the consumer price index
B) divide the GDP deflator by the consumer price index
C) multiply nominal GDP by the consumer price index
D) multiply nominal GDP by the GDP deflator
E) none of the above
E
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Between 1860 and 1914, the growth rate in industrial production
(a) fell behind the growth in the overall U.S. population. (b) outpaced the growth rates in the labor force and population. (c) was less than the growth rate in agricultural production. (d) fell behind both the growth rate in agricultural production and that of the overall U.S. population.
Real income can be determined by:
A. dividing the price level by nominal income. B. inflating nominal income for inflation. C. dividing the annual rate of inflation into the number "70." D. deflating nominal income for inflation.