# economics

posted by .

1. Use the following information to answer the questions below:
Quantities Produced Prices
CDs Tennis Racquets CDs Tennis Racquets
Year 2004 100 200 20 110
Year 2005 120 210 22 120

a. Calculate real GDP using prices from 2004. By what percent did real GDP grow?

b. Calculate the value of the price index for GDP for 2005 using 2004 as the base year. By what percent did prices increase?

## Similar Questions

1. ### economics

Suppose that people consume only three goods, as shown in this table: (5 Marks) Tennis Balls Tennis Racquets Gatorade 1998 price \$2 \$40 \$1 1998 quantity 100 10 200 1999 price \$2 \$60 \$2 1999 quantity 100 10 200 What is the percentage …
2. ### macro economics

Suppose that the residents of Veggieland spend all of their income on cauliflower, broccoli, and carrots. In 1998 they buy 100 heads of cauliflower for \$200,50 bunches of broccoli for \$75, and 500 carrots for \$50. In 1999 they buy …
3. ### economics

Calculate REAL GDP for each year (2005=100). Yr. Price of/Qty. Price of/Qty. socks produced hats produced 2005 \$1 100 \$2 50 2006 \$2 150 \$3 100 2007 \$3 200 \$4 150
4. ### Economics

Claculate REAL GDP GROSS DOMESTIC PRODUCT for each year (2005=100) Year p q p q 2005 \$1 100 \$2 50 2006 \$2 150 \$3 100
5. ### Accounting

(Dollar-Value LIFO) Presented below is information related to Dino Radja Company. Ending Inventory Price Date (End-of-Year Prices) Index December 31, 2004 \$ 80,000 100 December 31, 2005 115,500 105 December 31, 2006 108,000 120 December …
6. ### Economics

The answer i got is : GDP grew 10% GDP for 2006 using 2005 as the base year increase by 20% real GDP grow?
7. ### Economics

Help The answer i got is : GDP grew 10% GDP for 2006 using 2005 as the base year increase by 20% real GDP grow?
8. ### Finance

. You are given the following two sets of prices of European options as a function of the strike price, for a stock with S = 100. Assume that all options mature in 6 months, and that the interest rate (continuously compounding, annualized) …
9. ### Algebra

Natalie earns \$2.50 for each CD she sells and \$3.50 for each DVD she sells. Natalie sold 45 DVDs last year. She earned a total of \$780 last year selling CDs and DVDs. Write an equation that can be used to determine the number of CDs …
10. ### Algebra

Natalie earns \$2.50 for each CD she sells and \$3.50 for each DVD she sells. Natalie sold 45 DVDs last year. She earned a total of \$780 last year selling CDs and DVDs. Write an equation that can be used to determine the number of CDs …

More Similar Questions