The Equation for Determining Real GDP for Year X Is $\frac{\text {nominal GDP for year \( \mathrm{X} \) }}{\text {average nominal GDP }}$

question 22

Multiple Choice

The equation for determining real GDP for year X is:

• A) \(\frac{\text {nominal GDP for year \( \mathrm{X} \) }}{\text {average nominal GDP }}\)
• B) \(\frac{\text {nominal GDP for year \( \mathrm{X} \) }}{\text { GDP for year \( \mathrm{X} \)}}-100\)
• C) \(\frac{\text {nominal GDP for year \( \mathrm{X} \) }}{\text { GDP chain price index for year } \mathrm{X}}\times 100\)
• D) \(\frac{\text { nominal GDP for year \( \mathrm{X} \) }}{\text { average family income}}\times100\)

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Definitions:

World Price

The international market price of a good or service, influenced by factors like supply and demand, tariffs, and trade agreements.

Exporting Steel

The act of selling and shipping steel from one country to another, contributing to international trade.

Price Per Ton

A measure of how much a good costs per ton; commonly used in material and commodity markets.

Equilibrium Price

The equilibrium price where the number of items provided matches the number of items required.