On Homework 6

To answer the second problem you will need to make use of that formula that we used to derive the GDP deflator.

Recall the formula for the deflator:

GDP deflator = (nominal GDP / real GDP) x 100

So, using algebra you can solve for real GDP as:

real GDP = (nominal GDP / GDP deflator) x 100.

I hope that helps.

For anyone checking this to see if there was a homework assignment, I'm sorry I did not put a copy of this assignment on my I-drive. Unfortunately I'm no longer at the office today so I won't be able to post the handout there until I get into the office Tuesday a.m. I'm sorry for the inconvenience.