If a small country has current nominal GDP of $600 billion and a GDP deflator of 150, what is its real GDP?

If a small country has current nominal GDP of $600 billion and a GDP deflator of 150, what is its real GDP?

A. $40
B. $400
C. $450
D. $750
E. $900

Real GDP = (current nominal GDP x 100) / GDP deflator
Real GDP = (600 x 100) / 150
Real GDP = 60000 / 150
Real GDP = 400

 

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