Consider the data above for a simple economy: Using 2011 as the base year, calculate nominal GDP, real GDP, and the GDP deflator for 2016. Show your work.


Answer: 93.3

Nominal GDP 2016: (50 x $150) + ($2,300 x 2.40) + (350 x $55) = $32,270
Real GDP 2016: (50 x $250) + (2,300 x $2.00) + (350 x $50) = $34,600
GDP Deflator (Nominal GDP divided by Real GDP multiplied by 100):
$32,270 / $34,600 = 0.93265 x 100 =

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