Math  /  Data & Statistics

QuestionRefer to the following:
GROWTH RAES
Nominal GDP (Year 1 to Year 2 ) Real GDP (Year 1 to Year 2) 0.0%0.0 \% 0.0%0.0 \%
1. Suppose the price of apples doubles to 3300 phtwoth yetr 1 and year 2 but that nothing else in the economy changes. Instructions: Round your answers to one dethot phace. a. What would be the percentage change in torinal GG SP? \square 84 b. What would be the percentage change in foal GDPG D P ? \square 19.
2. Suppose the prices of both apples and breag double botwhog yoar t and year 2 and quantilies remain unchanged. Instructions: Round your answers to one decimal place. a. What would be the percentage change in nominal GDP? \square 19 b. What would be the pereentage chango in real GDP? \square 9
3. Reset the prices of apples and bread to their original values in year 2., (They should be the same as year 4 Suppose the quanties of both apples and bread rose by 10%10 \% in year 2 . Which of the following statements is true? Real GDP wil remain unchanged and nominal GQP wilil rise by 10 d. Both real and nominal GDP wai rise by 10\%. Both real and nominal GDP win remain unchanged. Nominal GDP will remain unehenged and reat GDP will wise thy 10\%

Studdy Solution
Determine the percentage change in both nominal and real GDP when quantities of apples and bread rise by 10%.
Percentage Change in Nominal GDP=$385.00$350.00$350.00×100=10.0% \text{Percentage Change in Nominal GDP} = \frac{\$385.00 - \$350.00}{\$350.00} \times 100 = 10.0\% Percentage Change in Real GDP=$385.00$350.00$350.00×100=10.0% \text{Percentage Change in Real GDP} = \frac{\$385.00 - \$350.00}{\$350.00} \times 100 = 10.0\%
Solution:
1. (a) The percentage change in nominal GDP when the price of apples doubles: 42.9%42.9\% (b) The percentage change in real GDP when the price of apples doubles: 0.0%0.0\%

2. (a) The percentage change in nominal GDP when the prices of both apples and bread double: 100.0%100.0\% (b) The percentage change in real GDP when the prices of both apples and bread double: 0.0%0.0\%
3. Both real and nominal GDP will rise by 10.0%10.0\% when the quantities of both apples and bread rise by 10%10\%.

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