Base Year 2000 Year P(bikinis) (bikinis) P(Speedos) @(Speedos) 2000 $75 2001 $82

Question

Base Year 2000 Year P(bikinis) (bikinis) P(Speedos) @(Speedos) 2000 $75 2001 $82 2002 $88 2003 $91 21 23 28 30 $50 $52 $55 $60 10 12 15 14 Using the data in the table, calculate Real GDP for 2003 using the chain-weighted method: If your answer is not a whole number, round at 2 decimal places. Calculate Real GDP for 2003 Step 1: Nominal GDP 2002: GDP 2003 valued at 2002 prices: growth rate: Step 2: GDP 2002 valued at 2003 prices:$ Nominal GDP 2003 growth rate Step 3 Average growth rate: Step 4 Real GDP 2003:

Explanation / Answer

* We are supposed to do only these many parts . For solution to other parts please post as a different question.

Year P (bikinis) Q (bikinis) P (speedos) Q (Speedos) 2000 75 21 50 10 2001 82 23 52 12 2002 88 28 55 15 2003 91 30 60 14 Step 1 Nominal GDP 2002 = P02(bikini)*Q02(bikini)+P02(Speedos)*Q02(Speedos) Nominal GDP 2002 = 3289 GDP 2003 valued at 2002 prices= P02(bikini)*Q03(bikini)+P02(Speedos)*Q03(Speedos) GDP 2003 valued at 2002 prices= 3410 Growth rate = 3.68 Step 2 GDP 2002 valued at 2003 prices= P03(bikini)*Q02(bikini)+P03(Speedos)*Q02(Speedos) GDP 2002 valued at 2003 prices= 3448 Nominal GDP 2003= P03(bikini)*Q03(bikini)+P03(Speedos)*Q03(Speedos) Nominal GDP 2003= 3570 Growth rate = 3.54 Step 3 Average growth rate = 3.61

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

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