The real GDP of the country is [tex]\$75[/tex]
Solution:
The formula for evaluating the real Gross Domestic product is Nominal Gross Domestic product divided by deflator that is,
[tex]R=\frac{N}{D}[/tex]
where R is Real GDP; N is Nominal GDP; D is Deflator
Given, Nominal GDP = [tex]\$225[/tex]
Deflator = 3
On subtituting the given values in the formula we get,
[tex]R=\frac{225}{3}=75[/tex]
The real GDP of a country measures the value of its economic activity.
