Question

13 A country reported a nominal GDP of $115 billion in 2015 and $125 billion in 2014 and reported a GDP deflator of 85 in 2015 and 100 in 2014. What happened to real output and prices from 2014 to 2015? a. Real output and prices both rose. b. Real output fell and prices rose. c. Real output rose and prices fell. d. Real output and prices both fell. 14. A country reported a nominal GDP of $85 billion in 2015 and $100 billion in 2014 and reported a GDP deflator of 100 in 2015 and 105 in 2014. What happened to real output and prices from 2014 to 2015? a. Real output and prices both rose. b. Real output rose and prices fell. c. Real output and prices both fell. d. Real output fell and prices rose.

Answer 1

# Since GDP Deflator = Nominal GDP = x100 Peal GDP So Real GDP = Nominal GDP Read GDP Refletor x 100 #@*.-20195 Nominal GDP: $115 Billion GDP defletor = .85 Real GDP : 115 x 100 Peal GDP 9 2015 = 135.29 Billion Th:- 2014 Nominal GDP = $125 GDP deflator = 100 Billion Real GDP = 125 x 100 Real Gilles : 125 Billion .... . 2014 Per By comparing figurer of ☺ e we can say Real output or GDP has increared. Since GDP deflater in 2014 was 100 & 2015 il is 85 this means Prices have decreared. Scanare currey that Real output ove & Price fell CamScanner option © is correct]

2014 Nominel GDP $100 Billion G7p deflatus - 5 105 Real apploutput: 100 x 100 Peal output = $95.24 Billion in 2014 ... 2015 Nominal GIP - $85 Billion GDP deflator - 100 Real GDP/ output = 85 x 100 Real output in = $85 Billion ... 6 کا له from @ t we can conclude that from 2014 to 2015 Reel output has decreare. Since in 2014 de GDP defletor was 105 but in 2015 il is 100. This means that prices have decreared. So We can say that Real outpit feld Real output & Prices both fell Ics Scanned with loptos © is correct CamScanner