n Item Year 1 Quantity Year 2 Quantity Year 1 Price Year 2 Price Cat food 25
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Question:
n
Item | Year 1 Quantity | Year 2 Quantity | Year 1 Price | Year 2 Price |
Cat food | 25 bags | 30 bags | $6.00 | $8.00 |
Dinner at El Zarape's | 50 meals | 45 meals | $9.00 | $12.00 |
3. Refer to the table above.
a. By what percentage has nominal GDP changed from Year 1 to Year 2? Note: Use the following formula: % change in GDP = Year 2 GDP – Year 1 GDP (Year 1 GDP + Year 2 GDP)/2
Year 1 = 25(6)+50(9) = 150+450 = 600
Year 2 = 30(8)+45(12) = 240+540 = 780
780-600/(1380)/2 = 180/(1380/2) = 180/690 = 0.26 = 26%
26%
b. Using Year 1 as your base year, by what percentage has real GDP changed from Year 1 to Year 2? (Note: Use the formula given above in part 3a).
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
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