ZuoTi.Pro
Question

GDP in year 1, the base year, was $325. In year 2, nominal GDP is $657.  ...

GDP in year 1, the base year, was $325. In year 2, nominal GDP is $657.  

a) What is the price index? (Round to 2 decimal points.)  

b) What is Real GDP in year 2? $

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

a) Price index = Nominal GDP in year 2 / Nominal GDP in the base year * 100

= $657 / $325 * 100 = 202.15

Therefore, Price index = 202.15

b) Real GDP = Nominal GDP / Price index = $657 / 2.02 = $325.25

0 0
Add a comment
Know the answer?
Add Answer to:
GDP in year 1, the base year, was $325. In year 2, nominal GDP is $657.  ...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Question 18 (3 points) In Year 1, Nominal GDP is $8314 and Price Index is 121....

    Question 18 (3 points) In Year 1, Nominal GDP is $8314 and Price Index is 121. What is Real GDP? (Round to the nearest dollar) Your Answer: Answer

  • Year Nominal GDP (billions of $) Real GDP (billions of 2000 $) Price Index (2000 =...

    Year Nominal GDP (billions of $) Real GDP (billions of 2000 $) Price Index (2000 = base year) Growth (%) in Real GDP from previous year 1977 2,030.9 4,750.5 42.8 6.4% 1978 2,294.7 45.8 1998 8,747.0 9,066.9 4.2% 1999 9,268.4 97.9 2000 9,817.0 9,817.0 2001 10,128.0 9,890.7 2002 10,487.0 10,074.8 104.1 2003 11,004.0 106.0 2004 11,735.0 108.3 6.What was the price index value for the US in the base year? 7.What was real GDP for the US in the year...

  • 4. Calculate the Nominal GDP, Real GDP using 2019 as the base year, and the GDP...

    4. Calculate the Nominal GDP, Real GDP using 2019 as the base year, and the GDP Deflator. Year Price of Milk Quantity of Milk Price of Honey Quantity of Honey 2017 $2 100 $4 200 2018 $4 100 $4 210 2019 $4 120 $6 220

  • The following table shows nominal GDP and an appropriate price index for a group of selected year...

    The following table shows nominal GDP and an appropriate price index for a group of selected years. Compute real GDP. Indicate in each calculation whether you are inflating or deflating the nominal GDP data Instructions: Enter your responses in the gray-shaded cells. Round your answers to 2 decimal places. Nominal GDP Year 1968 1978 1988 1998 2008 Price Index 2005 100 22.01 40.40 66.98 85.51 108.48 Real GDP, Billions Effect on Nominal GDP Billions $909.80 2293.80 5100.40 8793.50 14441.40 0.00 increase /...

  • What is the nominal GDP of year 3? What is the Real GDP of year 3:...

    What is the nominal GDP of year 3? What is the Real GDP of year 3: Year Units of Output Price of Bagel per Unit Price Index (year 1=100) 1 10 $5 100 2 15 10 200 3 20 15 300 4 25 20 400

  • Based on the table below, calculate nominal GDP, real GDP, the GDP deflator, and the inflation...

    Based on the table below, calculate nominal GDP, real GDP, the GDP deflator, and the inflation rate in each year and fill in the missing parts of the table. Use 2014 as the base year. Instructions: Round nominal and real GDP values to two decimal places. Round GDP deflator and inflation rate values to the nearest whole number. Price of Quantity of Price of orange ($) Quantity of oranges 700 beach balls beach ball Nominal GDP ($) Real GDP ($)...

  • Help! Please give me an explanation as well The following table shows nominal GDP and an...

    Help! Please give me an explanation as well The following table shows nominal GDP and an appropriate price index for a group of selected years. Compute real GDP. (Enter your responses rounded to one decimal place.) Nominal GDP Real GDP (Billions of dollars Year (Billions of dollars Price Index 2000 2004 2008 2012 2015 $10,284.8 $12,274.9 $14,718.6 $16,155.3 $18,036.6 81.9 89.1 99.2 105.2 110.0 Suppose that in Year 1 the total output in a single-good economy was 7,500 buckets of...

  • Based on the table below, calculate nominal GDP real GDP, the GDP deflator, and the infation...

    Based on the table below, calculate nominal GDP real GDP, the GDP deflator, and the infation rate in each year and fill in the missing parts of the table Use 2010 as the base year Instructions: Round nominal and real GDP values to two decimal places. Round GDP deflator and inflation rate values to the nearest whole number Quantity Price of Quantity Price of Real GOP ($) GOP deflator Inflation rate (%) Year of orange of beach beach ball GDP...

  • 22) Refer to the following table of Annual GDP in the US. Year Nominal GDP Price Index Real GDP 1975 1985 1990 2005...

    22) Refer to the following table of Annual GDP in the US. Year Nominal GDP Price Index Real GDP 1975 1985 1990 2005 2015 $1,688.9 Billion $4,346.7 Billion $5,277.4 Billion $13,093 Billion $17,947 Billion 36.2 51.1 59.7 93.4 109.9 $4,665.5 $8,506.3 $8,839.9 $?????? $16,330.3 Using 2007 as the Base Year with the Price Index that year at 100, the Real GDP for 2005 would be calculated to be: A) $11,914 B) $13,093 $14,018 $15,271

  • Real vs. Nominal GDP Year Real GDP Nominal GDP GDP Deflator 1990 $1000 billion $950 billion...

    Real vs. Nominal GDP Year Real GDP Nominal GDP GDP Deflator 1990 $1000 billion $950 billion 1995 $1200 billion $1200 billion 1998 $1500 billion 115 2000 $1750 billion 125 What is the base year? What is the value of the GDP Deflator in the base year? What is the value of the GDP Deflator in 1990? What is the value of Real GDP in 1998? What is the value of Nominal GDP in 2000?

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT