What was real GDP in year 2?

To find the real GDP for year 2, we can use the relationship between nominal GDP, real GDP, and the price index.

The formula to calculate real GDP is:

Real GDP = (Nominal GDP / Price Index) x 100

From the data provided, for year 2:

• Nominal GDP = 5,500 billion
• Price Index = 112

Now, we plug these values into the formula:

Real GDP = (5,500 / 112) x 100

Calculating this gives us:

Real GDP = 49.1071 x 100 = 4,910.71 billion

This rounds to approximately 4,911 billion. Therefore, the correct answer is:

c) 4,911 billion