00:01
Hello, folks.
00:02
In this question, we are going to be determining the percent change in real gdp between 1970 and 1980, rounding to the nearest percentage.
00:12
So the way we're going to do this is by converting the nominal gdp for 1970 and for 1980 into the real gdp.
00:21
So let's start with the price index.
00:25
And the price index is equal to the nominal over the real.
00:37
So nominal over real gdp.
00:42
So for 1970, we have the price index.
00:50
Let me label this as 1970.
00:54
We've got 30 .6 is equal to 1 ,300, $1 ,035 .6 billion divided by the real gdp.
01:15
Actually, there's a better way for me to notate that.
01:18
Let's do it divided by gdp subscript r.
01:25
And similarly, we're just going to solve for the gdpr, the real gdp.
01:31
So we're going to do that by dividing 30 .6 on both sides and moving gdpr to the left -hand side...