Yaksh Patel 5/25 The table below shows the price indexes and the nominal gross d

Question

Yaksh Patel 5/25 The table below shows the price indexes and the nominal gross domestic product (GDP) for an economy from 2001 to 2005. The real GOP between 2002 and 2005. Table 6.3 Year 2001 2002 2003 2004 2005 Price Index Nominal GR 105 $110 billion $120 billiorn $125 bltion $137.5 billion 120 132 decreased more than $5 billion increased by less than $T billion remained constant increased more than $5 billiorn decreased by less than $1 billion Accessiblity Prvacy Stabement Copyright Nonces Terms of Use Help MacBook A

Explanation / Answer

Answer.) Decreased by less than 1 billion.

Real GDP = (nominal GDP/price index) × 100

In 2002,

Real GDP = ( 110/105)×100 = 104.762

In 2005,

Real GDP = ( 137.5/132) × 100 = 104.167

Thus real GDP reduced by less than $1 billion .

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.