A. Nominal GDP in 1970 was $1035.6 billion, and in 1980 real GDP was $4609.6 billion,...

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A. Nominal GDP in 1970 was $1035.6 billion, and in 1980 real GDP was $4609.6 billion, while nominal GDP was $2784.2 billion. The GDP price index was 30.6 for 1970, where 1992 was the base year. Calculate the percent change in real GDP in the decade from 1970 to 1980. Round off to the nearest percentage point. Calculate the inflation rate during the same decade. B. In 1975, Richard Petty won the NASCAR race in Richmond, earning $6265. In 2006, Dale Earnhardt, Jr., won the race, earning $239,166. The CPI index was 52.5 in 1975 and 198.7 in 2006 (base year = 1982-1984). Calculate the real earnings (based on base year 1982-1984) of both Petty and Earnhardt. How do the 2 compare and what may explain this? C. Suppose the expected inflation rate was 2.5%, the expected real interest rate was 4.0%. Calculate the nominal interest rate. Now suppose the actual inflation rate turned out to be 3.2%. Calculate the actual real interest rate. A. Nominal GDP in 1970 was $1035.6 billion, and in 1980 real GDP was $4609.6 billion, while nominal GDP was $2784.2 billion. The GDP price index was 30.6 for 1970, where 1992 was the base year. Calculate the percent change in real GDP in the decade from 1970 to 1980. Round off to the nearest percentage point. Calculate the inflation rate during the same decade. B. In 1975, Richard Petty won the NASCAR race in Richmond, earning $6265. In 2006, Dale Earnhardt, Jr., won the race, earning $239,166. The CPI index was 52.5 in 1975 and 198.7 in 2006 (base year = 1982-1984). Calculate the real earnings (based on base year 1982-1984) of both Petty and Earnhardt. How do the 2 compare and what may explain this? C. Suppose the expected inflation rate was 2.5%, the expected real interest rate was 4.0%. Calculate the nominal interest rate. Now suppose the actual inflation rate turned out to be 3.2%. Calculate the actual real interest rate.

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Answers A Nominal GDP change between 1970 to 19802784210356116885 GDP price index change 6043... View the full answer