Plz add your explanation Rank the following years from highe

Plz add your explanation.

Rank the following years from highest to lowest in terms of real GDP (gross domestic product) Highest Real GDP ominalGDP GDP Real Deflator GDP Year 2009 2010 $1250 $1020 57 2011 $1450 89 Lowest Real GDP 2009 2010 2011

Solution

GDP Deflator = (Nominal GDP/Real GDP)*100 ---------------- (1)

In 2009, real GDP = (1020/57)*100 = $1789.47

In 2010, real GDP = (1250/62)*100 = $2016.13

In 2011, real GDP = (1450/89)*100 = $1629.21

So, the rank from highest to lowest is:

2010 ($2016.13)

2009 ($1789.47)

2011 ($1629.21)

Here, the formula of GDP deflator in equation (1) is used to calculate the real GDP as above. On the basis of real GDP data, the ranking from highest to lowest is done.