Year Nominal GDP Price Index 2012 $100,000 200 2013 $110,000 220 4. The table above shows the nominal gross domestic product (GDP) and the price index for an economy during the period 2012 and 2013. Which of the following would have occurred from 2012 to 2013? (A) Real GDP decreased by 20%. (B) Real GDP decreased by 10%. (C) Real GDP increased by 20%. (D) Real GDP increased by 10%. (E) Real GDP did not change.
Added by Zachary L.
Close
Step 1
Real GDP is calculated using the formula: \[ \text{Real GDP} = \frac{\text{Nominal GDP}}{\text{Price Index}} \times 100 \] For 2012: \[ \text{Real GDP}_{2012} = \frac{100,000}{200} \times 100 = 50,000 \] Show more…
Show all steps
Your feedback will help us improve your experience
Prabhakar Kumar and 93 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
1. What is the nominal GDP in 2014? 2. What is real GDP in 2014? Use 2013 as the base year.
Juan N.
The table below contains prices and output for a two good economy. Nominal and real GDP in 2013 are both $55,625. Use the information in the table to answer the following questions. Year | Shirts Price | Shirts Quantity | Pants Price | Pants Quantity 2013 | $7.50 | 750 | $12.50 | 4000 2014 | $12.00 | 600 | $18.50 | 3500 1. What is nominal GDP in 2014? 2. What is real GDP in 2014? Use 2013 as the base year. Real output from 2013 to 2014 has: - experienced inflation. - stayed the same. - increased. - decreased.
Crystal W.
Nominal GDP was $12.1 trillion and real GDP is $11 trillion. The GDP price index is A: 121.0 B: 91.0 C: 110.0 D: 1.10 E. 90.1
Joram H.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
100,000+
Students learning Economics with Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD
