- CFA Exams
- CFA Exam: Level I 2021
- Study Session 4. Economics (1)
- Reading 14. Aggregate Output, Prices, and Economic Growth
- Subject 1. Gross Domestic Product
CFA Practice Question
Real GDP is ______.
B. expressed in inflation-adjusted prices
C. nominal GDP multiplied by the GDP deflator
A. the GDP deflator multiplied by real GDP
B. expressed in inflation-adjusted prices
C. nominal GDP multiplied by the GDP deflator
Correct Answer: B
Real GDP is GDP adjusted for the effects of inflation.
User Contributed Comments 8
| User | Comment |
|---|---|
| cbb1 | I agree that B is right; why isn't C also a correct answer? |
| haarlemmer | divided, not multiplied i guess. |
| kuan | should be multiplied by GDP deflator (base year)/GDP deflator (current year) Hence C is not correct |
| jassosahan | Nominal GDP- inflation |
| vi2009 | GDP Deflator = (Nominal GDP / Real GDP) *100 |
| cfaajay | Nominal GDP/Real GDP = GDP deflator |
| shann680 | Real GDP=(Nom GDP/GDP Deflator) / 100 |
| choas69 | Real GDP = Nominal GDP x ( Base year Deflator / Current year Moms sphegitte ). |