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slamgirl [31]
3 years ago
8

In the economy above, real GDP for year 1 is:

Advanced Placement (AP)
1 answer:
Reika [66]3 years ago
6 0

Answer:  $393

Explanation:

Real GDP is the nominal GDP after it is adjusted for inflation. When using the price index, it can be adjusted by the formula:

Real GDP = Nominal GDP for year 1 / Price index for year 1 * 100

= 550 / 140 * 100

= 392.8571

= $393

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