please help me for thise 2 numbers the lewestventy-Savings Identity for a simpli

Question

please help me for thise 2 numbers

the lewestventy-Savings Identity for a simplified Stabe and expiain asiness only) tre market econommy. Provide a (households and-Bus simple numercal example to spport your explaration. Asociety's GDPcr year I was composed of 100 units apples t 200 anits of oranges sold for $3.00 per srut sold for $2.00 per unifor $5.00 per unit The same sockty and 400 urits of bananas so GDP for year 2 was cotm per urit, 150 units of oranges sold for $4.00 ol 250 units of apples, sold for $1.00 of bananas sold for $4.00 per unit Fand the real charge af society's GDP from year 1 to year 2 using year 1 as a base year. b. Find the rate of price indlation from year 1 to year 2

Explanation / Answer

COMPUTATION OF REAL CHANGE OF GDP(USING YEAR1 AS BASE YEAR)

YEAR1 YEAR2

Real gdp growth rate=change÷base year×100

For year1= 2800÷2800×100=0%(there is no change)

For year2=3950-2800×100=41.07%

RATE OF PRICE OF INFLATION:

Consumer price index=price of product in year÷price product in base year×100

CPI For year1=$10÷$10×100=100

CPI For year2= $9÷$10×100=90

INFLATION =%CHANGE IN CPI BETWEEN TWO YEARS

YEAR1 TO YEAR2=CPIY2-CPIY1÷CPIY1×100=90-100÷ 100×100= -10%

Product quantity price gdp quantity price gdp Apple 100 2 200 250 2 500 Oranges 200 3 600 150 3 450 Bananas 400 5 2000 600 5 3000 Total 2800 3950

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

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