B. Determine the growth rate of nominal GDP (if Ford were...

b. Determine the growth rate of nominal GDP (if Ford were the entire economy). c. Determine the growth rate of real GDP (if Ford were the entire economy). d. Use the shortcut you learned to convert between real and nominal GDP growth rates to determine the growth rate of prices. Growth rate of nominal GDP: 15.27 % Growth rate of real GDP: 5.60 % Growth rate of prices: 9.67 %

Transcript

0:00 Hello everyone.

00:02 So the question says that the table displays price and quantity information for two vehicle models produced by ford motor company, the f -ceries trucks and the scape suvs.

00:13 Now firstly before moving ahead to solve the subparts of the questions, firstly we'll calculate nominal gdp in 2016 and 17 and real gdp in 2016 and 17.

00:24 So, firstly, nominal gdp in 2016 is equals to price multiplied by quantity of scape in 2016 plus price multiplied by quantity of f series in 2016.

01:00 Now we'll put the values.

01:03 So, price is given $24 ,485.

01:10 Multiplied by quantity that is given 307 69 us dollars sorry it's it's 307 ,069 is our quantity plus price is again given for 2016 f series is given 44 ,400 us dollars multiplied by quantity is given 820 ,799.

01:56 Now on solving this we'll get 43 .9.

02:03 $962 billion us dollars.

02:08 Now similarly we'll calculate nominal gdp for 2017.

02:14 So nominal gdp 2017 is equal to again with the same formula we'll write just we'll put the values from 2017 so it will be 24 ,645 multiplied by 308 ,296 plus 47 ,000 multiplied by 47 ,800 multiplied by 896 ,76 ,76 ,76 which on solving will give 50 .4.

03:02 Now next moving ahead we'll calculate real gdp in 2016.

03:14 So the formula for this is price multiplied by quantity of scape in 2016 plus price multiplied by quantity of f series in 2016...

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