The following data provides a "real-world" illustration of adjusting GNP for changes in the price level (selected years, in billions of dollars). $$ \begin{array}{cccc} \text { Year } & \begin{array}{l} \text { Money, or } \\ \text { unadjusted GNP } \end{array} & \begin{array}{c} \text { Price level } \\ \text { index, percent } \end{array} & \begin{array}{c} \text { Adjusted } \\ \text { GNP } \end{array} \\ 1946 & \$ 209.6 & 44.06 & ? \\ 1951 & 330.2 & 57.27 & ? \\ 1958 & 448.9 & 66.06 & ? \\ 1964 & 635.7 & 72.71 & ? \\ 1968 & 868.5 & 82.57 & ? \\ 1972 & 1,171.5 & 100.00 & ? \\ 1974 & 1,406.9 & 116.20 & ? \\ 1975 & 1,498.9 & 126.37 & ? \end{array} $$ Determine the adjusted GNP for each year.

Adjusted GNP (Gross National Product) is the value of the GNP adjusted for inflation or change in the price level. In this exercise, the Price level index given in percentage is used to adjust the unadjusted GNP for each year.

To calculate the Adjusted GNP, we will use the following formula: Adjusted GNP = (Unadjusted GNP / Price Level Index) * 100 Apply this formula to calculate the adjusted GNP for each year in the table: Year 1946: Adjusted GNP = \(\frac{209.6}{44.06}\) * 100 = 475.45 billion Year 1951: Adjusted GNP = \(\frac{330.2}{57.27}\) * 100 = 576.48 billion Year 1958: Adjusted GNP = \(\frac{448.9}{66.06}\) * 100 = 679.31 billion Year 1964: Adjusted GNP = \(\frac{635.7}{72.71}\) * 100 = 874.25 billion Year 1968: Adjusted GNP = \(\frac{868.5}{82.57}\) * 100 = 1051.90 billion Year 1972: Adjusted GNP = \(\frac{1171.5}{100.00}\) * 100 = 1171.50 billion Year 1974: Adjusted GNP = \(\frac{1406.9}{116.20}\) * 100 = 1210.64 billion Year 1975: Adjusted GNP = \(\frac{1498.9}{126.37}\) * 100 = 1186.38 billion

Now, add the calculated Adjusted GNP values for each year to the original table: $$ \begin{array}{cccc} \text { Year } & \begin{array}{l} \text { Money, or } \\ \text { unadjusted GNP } \end{array} & \begin{array}{c} \text { Price level } \\ \text { index, percent } \end{array} & \begin{array}{c} \text { Adjusted } \\ \text { GNP } \end{array} \\ 1946 & \$ 209.6 & 44.06 & 475.45 \\ 1951 & 330.2 & 57.27 & 576.48 \\ 1958 & 448.9 & 66.06 & 679.31 \\ 1964 & 635.7 & 72.71 & 874.25 \\ 1968 & 868.5 & 82.57 & 1051.90 \\ 1972 & 1,171.5 & 100.00 & 1171.50 \\ 1974 & 1,406.9 & 116.20 & 1210.64 \\ 1975 & 1,498.9 & 126.37 & 1186.38 \end{array} $$ These are the adjusted GNP values for each specific year.