Identify the true statement.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. If real GDP is 240 and price index is 120, nominal GDP is 288.
The true statement is:
If real GDP is 240 and price index is 120, nominal GDP is 288.
To find nominal GDP, use the formula:
Nominal GDP = Real GDP × Price Index/100
For the given values:
Nominal GDP = 240 × 120/100 = 240 × 1.2 = 288