question 11\nif nominal gdp is $770 billion and the price index is 110, what is the real gdp?\n$660…

question 11\nif nominal gdp is $770 billion and the price index is 110, what is the real gdp?\n$660 billion\n$600 billion\n$880 billion\n$700 billion

question 11\nif nominal gdp is $770 billion and the price index is 110, what is the real gdp?\n$660 billion\n$600 billion\n$880 billion\n$700 billion

Answer

Explanation:

Step1: Recall the formula

The formula for calculating real GDP is $Real\ GDP=\frac{Nominal\ GDP}{Price\ Index}\times100$.

Step2: Substitute values

Given nominal GDP = $770$ billion and price index = 110. Substitute into the formula: $Real\ GDP=\frac{770}{110}\times100$.

Step3: Calculate

First, $\frac{770}{110}=7$, then $7\times100 = 700$ billion.

Answer:

$700$ billion