Homework Help: Economics

Posted by John Price on Monday, December 1, 2008 at 2:12pm.

The answer i got is :
GDP grew 10%

GDP for 2006 using 2005 as the base year increase by 20%

real GDP grow? 10%

If i'm right, let me know, if not, please show Calculation

Thank You

Use the following data to answer questions 1-3 (be sure to provide all calculations).
Quantity
Year CDs Tennis Racquets

2005 90 180
2006 100 90

Price
CD's Tennis Racquets
$18 $100
$20 $110

Calculate real GDP for 2005 and 2006 using 2005 prices. By what percent did real GDP grow?

Calculate the value of the price index for GDP for 2006 using 2005 as the base year. By what percent did prices increase?

Now calculate real GDP for 2005 and 2006 using 2006 prices. By what percent did real GDP grow?

Review the GDP information for the past few years from the Bureau of Economic Analysis's Website. Provide a brief summary of the GDP trends over that timeframe and discuss two or three events which may have caused these trends.

Economics - Brenna, Monday, December 1, 2008 at 4:43pm
Well, I'm not going to give you the answer straight out. You should try to figure that out by yourself.

What I will tell you is that to increase a number by 20% you have to find 20% of that number first.

To do that, divide the number by 100, then multiply it by 20. that is 20% of that number. Then you can just take that number and add it to your original number.

Is that the answer you were looking for? Your question was sort of confusing.

Hope this helps!
~Brenna~

Answer this Question

Related Questions

Economics - Help The answer i got is : GDP grew 10% GDP for 2006 using 2005 as ...
economics - 1. Use the following information to answer the questions below: ...
macroeconomics - Year - 2000 Nominal GDP: 9,817 Real GDP: ___________ GDP ...
macroeconomics - 23. The next four questions refer to the following price and ...
Macroeconomics - How do you calculate the nominal GDP and the real GDP of ...
Economics - The task of my assignment was to calculate the Nominal GDP, given ...
Economics - 1) If C = 1000 + 7/8[GDP-1000], I = 700 and G = 1000 and the economy...
economics - What are the following variables used for in economics: Nominal GDP...
macroeconomics - 27. The following data show nominal GDP and the appropriate ...
Macroeconomics - Calculating the Rate of Growth of Per Capita Real GDP The ...

For Further Reading

First Name:
School Subject:
Answer: