Suppose 2010 is the base year. From 2010 to 2020, the price index increases from 100 to 102.5. If nominal Gross Domestic Product (GDP) is $2,800 in 2020, then the real Gross Domestic Product (GDP) in 2020 is

A. $2,870.
B. $2,700.
C. $2,800.
D. $2,732.


Answer: D

Economics

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