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Question One
1. Calculate the real GDP for 2005 and 2006 using 2005 prices
2005:
(90 X $18) + (180 X $100) = 1,620 + 18,000 = 19,620
2006:
(100 X $18) + (190 X $100) = 1,800 + 19,000 = 20,800
2. Calculate by what percentage did the real GDP grow
20,800 ? 19,620 = 1,180 / 19,620 = 0.0601 X 100 = 6...
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Question One
1. Calculate the real GDP for 2005 and 2006 using 2005 prices
2005:
(90 X $18) + (180 X $100) = 1,620 + 18,000 = 19,620
2006:
(100 X $18) + (190 X $100) = 1,800 + 19,000 = 20,800
2. Calculate by what percentage did the real GDP grow
20,800 ? 19,620 = 1,180 / 19,620 = 0.0601 X 100 = 6...
Essay fragment
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