Question

In May​ 2013, the value of the Consumer Price Index​ (CPI) in a certain​ country, Polonia, reached an​ all-time high of 190 index points and per capita nominal GDP was ​$42 comma 500. In January​ 1950, the CPI was at its lowest at 59 index points. Per capita nominal GDP in 1950 was ​$7 comma 200. Calculate real GDP per capita for 1950 by converting that​ year's nominal GDP per capita into current​ (2013) dollars. For​ 1950, real GDP per capita​ (in 2013​ dollars) was ​$ nothing. ​(Round your response to one decimal place​.)

Answer 1

Real GDP per capita​ (in 2013​ dollars) = 7,200 * (190 / 59)

                                                             = $23,186.4

Thus, ror​ 1950, real GDP per capita​ (in 2013​ dollars) was ​$23,186.4.