Questions: Using the table below, calculate real GDP (in billions of dollars) in 2003. Round your answer to the nearest hundredth. Year Nominal GDP (in billions of dollars) GDP Deflator (2005=100) --- --- --- 2002 8,309.8 83.3 2003 9,890.9 87.6 2004 10,302.9 94.5 2005 10,856.8 100 2006 11,200.8 106 Provide your answer below: square

Using the table below, calculate real GDP (in billions of dollars) in 2003. Round your answer to the nearest hundredth.

Year  Nominal GDP (in billions of dollars)  GDP Deflator (2005=100)
---  ---  ---
2002  8,309.8  83.3
2003  9,890.9  87.6
2004  10,302.9  94.5
2005  10,856.8  100
2006  11,200.8  106

Provide your answer below:
 square
Transcript text: Using the table below, calculate real GDP (in billions of dollars) in 2003. Round your answer to the nearest hundredth. \begin{tabular}{|c|c|c|} \hline Year & \begin{tabular}{c} Nominal GDP \\ (in billions of dollars) \end{tabular} & \begin{tabular}{c} GDP Deflator \\ $(\mathbf{2 0 0 5}=100)$ \end{tabular} \\ \hline 2002 & $8,309.8$ & 83.3 \\ \hline 2003 & $9,890.9$ & 87.6 \\ \hline 2004 & $10,302.9$ & 94.5 \\ \hline 2005 & $10,856.8$ & 100 \\ \hline 2006 & $11,200.8$ & 106 \\ \hline \end{tabular} Provide your answer below: $\$$ $\square$
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Solution

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To calculate the real GDP for 2003, we use the formula:

\[ \text{Real GDP} = \frac{\text{Nominal GDP}}{\text{GDP Deflator}} \times 100 \]

For the year 2003, the values given are:

  • Nominal GDP = $9,890.9$ billion
  • GDP Deflator = 87.6

Plug these values into the formula:

\[ \text{Real GDP} = \frac{9,890.9}{87.6} \times 100 \]

\[ \text{Real GDP} = \frac{9,890.9}{87.6} \times 100 \approx 11,288.36 \]

Therefore, the real GDP for 2003, rounded to the nearest hundredth, is approximately $11,288.36 billion.

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