please see attachment
DEPARTMENT OF BUSINESS, ACCOUNTING AND SPORT MANAGEMENT
ECON 201- PRINCIPLES OF ECONOMICS I
ASSIGNMENT #5
Instructor: Dr. Kingsley Nwala
Questions: All questions are based on this table.
YEAR |
OUTPUT |
PRICE |
GDP PRICE INDEX |
1 |
5 |
$35 |
100 |
2 |
7 |
$40 |
114.29 |
3 |
9 |
$45 |
|
4 |
10 |
$50 |
(a) Based on this table, which year is considered the Base or Reference year?
(b) Calculate (Year3) GDP price index.
(c) If Nominal GDP in year 3 is $405, what is the Real GDP for Year 3? Please, you must use the formula below to calculate your answer.
Real GDP Year 3 = Nominal GDP (Yr.3) ÷ GDP price index Yr.3 (in hundredths).
DEPARTMENT OF BUSINESS, ACCOUNTING AND SPORT MANAGEMENT