AP Macroeconomics 2.6: Real GDP and the GDP Deflator
Calculate real GDP and the GDP deflator from nominal output, base-year prices, and current quantities in reported macroeconomic data.
- Syllabus
- Effective Fall 2025
- Course
- AP Macroeconomics
Calculate real GDP and the GDP deflator from nominal output, base-year prices, and current quantities in reported macroeconomic data.
The table provided shows the quantities and unit prices of shirts, bread, and pants, the only
three goods produced in the country of Middleland in 2021 and 2022. Assume that 2021 was the
base year.

Calculate the real GDP in Middleland in 2022. Show your work.
Point 2: The real GDP in Middleland in 2022 is $1,190.
Real GDP = ($11 x 50) + ($4 x 70) + ($12 x 30) = $1,190.