39. The following table shows the price of a specific stereo receiver for a five

Question

39. The following table shows the price of a specific stereo receiver for a five-year period. Using Year I as the base year, cakculate the price index for each year. Price index (answers Year Price using Year 1 - 100) 1 $112 2 144 3 160 4 176 5 200 40. The following data show nominal GDP and the appropriate price index for several years. Compute real GDP for each year and indicate whether you have "inflated" or "deflated" nominal GDP in finding real GDP. AIl GDP are in billions. Nominal Price level Infated (T) Year GDP index Real Deflated (D) GDP 1 $117 120 2 124 104 3 143 4 149 5 178 112 6 220 143 85 96 41. The countries with the 4 highest overall GDP are the USA, China, Japan and Germany. Answer 42. The first reading of US GDP for the fourth quarter of 2015 was 2.6% 43. The three most populous countries in the world are China, the USA and India?What's the approximate 44. To compute GDP per capita you would divide the overall GDP by the population of the particular country : - population of these countries? Answer: 45. The simplest way to calculate GDP is to sum the total sales of all business firms. Answer 46. Durable goods are those that last for 10 or more years. Answer 47. There is no difference between Personal disposable income and your pay before taxes have been deducted. Answer

Explanation / Answer

Answer : 39) According to the question, base year is 1 with price level $112.

We know that the formula of price index is following

Price index = Current year price level / base year price level * 100

For year 1 : Price index = 112 / 112 * 100 = 100

For year 2 : Price index = 144 / 112 * 100 = 128.571

For year 3 : Price index = 160 / 112 * 100 = 142.857

For year 4 : Price index = 176 / 112 * 100 = 157.143

For year 5 : Price index = 200 / 112 * 100 = 178.571

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