CFA Practice Question

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CFA Practice Question

Real GDP is ______.

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 ).
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