Question: ( 1 ) (2) (3) (4) (5) (6) (7 ) (8) (9) AVG OF YEAR 1 YEAR 2 YEAR 1 & NOMINAL NOMINAL YEAR 1

( 1 ) (2) (3) (4) (5) (6) (7 ) (8) (9) AVG OF
( 1 ) (2) (3) (4) (5) (6) (7 ) (8) (9) AVG OF YEAR 1 YEAR 2 YEAR 1 & NOMINAL NOMINAL YEAR 1 YEAR 2 YEAR 1 YEAR 2 YEAR 1 YEAR 2 YEAR 2 GDF GDP REAL GDP REAL GDP OUTPUT OUTPUT PRICES PRICES PRICES (1) x (3) (2) x (4 ) (1) x (5 ) (2) X (5) 100 10 automobiles automobiles $20,000 $22,000 $21,000 $2,000,000 $2,420,000 $2, 100,000 $2,310,000 100 100 housing units housing units $100,000 $110,000 $105,000 $10,000,000 $1 1,000,000 $10,500,000 $10,500,000 1,000 hrs of 1, 100 hrs of econ lectures econ lectures $100 $100 $100 $100,000 $1 10,000 $100,000 $ 1 10,000 GDP $12, 100,000 $13,530,000 $12,700,000 $12,920,000 PERCENT INCREASE IN GDP 11.82% 1.73% 1 . by 1. 73 . The preceding table indicates that nominal GDP increased by 11. $2%, and that real GDP increased 2. If the number of housing units had increased from 100 units in Year 1 to 110 units in Year 2, what would have been the value of real GDP in Year 2? $_210,000. What would this change in the output of housing units have made the percentage increase in real GDP between Year 1 and Year 2? % 3 . In the table above, would the increase in real GDP between Year 1 and Year 2 have been greater or smaller if the output of economics lectures had remained constant and the output of housing units had increased by 10% instead of vice versa ? Why

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