Finding real GDP?

Question

The following table shows nominal GDP and an appropriate price index for a group of selected years. Compute real GDP.

1st case

Year 1989

Nominal GDP (Billions) 527.4

Price Index (1996 = 100) 22.19

Find Real GDP

2nd Case

Year 1990

Nominal GDP (Billions) 911.5

Price Index (1996 = 100) 26.29

Find Real GDP

Case 3

Year 1991

Nominal GDP (Billions) 2295.9

Price Index (1996 = 100) 48.22

Find Real GDP

Case 4

Year 1992

Nominal GDP (Billions) 4742.5

Price Index (1996 = 100) 80.22

Find Real GDP

Case 5

Year 1993

Nominal GDP (Billions) 8790.2

Price Index (1996 = 100) 103.22

Find Real GDP

Answer 1

RealGDP=NominalGDP*100/Price Index

Year..Nominal GDP.. Price Ind...Real GDP(1996)

1989......527.4........... 22.19........2376.75

1990......911.5........... 26.29........3467.10

1991.....2295.9.......... 48.22.........4761.30

1992.....4742.5.......... 80.22.........5911.87

1993.....8970.2......... 103.22........8690.37

Answer 2

I'll give you a hint: you need the inflation rate for all five cases