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Investment advice and corporate finance
Module 12Investment Management and Corporate FinanceNominal GDP is RM1,980 billion and the GDP deflator is 110 (base year = 100). What is real GDP?
Real GDP = nominal GDP ÷ (deflator ÷ 100) = 1,980 ÷ 1.10 = RM1,800 billion. RM2,178 billion multiplies by the deflator instead of dividing. RM1,870 billion subtracts the index number from GDP, which mixes units. RM1,980 billion is nominal GDP, unadjusted for prices. Source: SIDC Module 12 Study Outline (Jul-Dec 2026) Section 1 Topic 2 Fundamentals of Economics; N. G. Mankiw, Macroeconomics (as at October 2026).
Multiplying by the deflator, which inflates rather than deflates.
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