The following table shows nominal GDP and an appropriate price index for a group of selected years. Compute real GDP. Indicate in
each calculation whether you are inflating or deflating the nominal GDP data.
Instructions: Enter your responses in the gray-shaded cells. Round your answers to 2 decimal places.
Year
1978
1988
1998
2008
2018
Nominal GDP,
Billions
2,293.80
5,100.40
8,793.50
14,441.40
20,501.00
Price Index
(2005 = 100)
40.40
66.98
85.51
108.48
128.59
Real GDP, Billions Effect on Nominal GDP