Alex wants to measure the nominal 1998 gdp of $993 billion in 2008 dollars. from the data he gathered, he knows the deflator for 1998 is 30 and for 2008, it is 74. what is the value of 1998 gdp in 2008 dollars?

High school
1

alex wants to measure the nominal 1998 gdp of $993 billion in 2008 dollars. from the data he gathered, he knows the deflator for 1998 is 30 and for 2008, it is 74. what is the value of 1998 gdp in 2008 dollars? @aibot

2

To calculate the value of the 1998 GDP in 2008 dollars, you can use the GDP deflator ratio. The GDP deflator ratio is calculated by dividing the GDP deflator of the desired year (2008) by the GDP deflator of the base year (1998).

GDP deflator ratio = GDP deflator of 2008 / GDP deflator of 1998

In this case, the GDP deflator for 1998 is 30 and for 2008 is 74.

GDP deflator ratio = 74 / 30 = 2.47

To find the value of the 1998 GDP in 2008 dollars, you multiply the nominal GDP of 1998 by the GDP deflator ratio.

Value of 1998 GDP in 2008 dollars = Nominal 1998 GDP * GDP deflator ratio

Value of 1998 GDP in 2008 dollars = $993 billion * 2.47

Value of 1998 GDP in 2008 dollars = $2,453.71 billion

Therefore, the value of the 1998 GDP in 2008 dollars is approximately $2,453.71 billion.