Question 14 - Calculate real GDP in 2012 and real GDP in 2013 using the chained-
ID: 1113422 • Letter: Q
Question
Question 14 - Calculate real GDP in 2012 and real GDP in 2013 using the chained-dollar method.
Sr MSN.com Hotmail. Outlook. Chamberlain University XWeek 5: MEL HomeworkX Do Homework - Pamela Harris X https://wwww.mathxl.com/Student/PlayerHomework.aspx?homeworkld Q Search Principles of Economics Pamela Harris 11/24/17 12:23 PM Homework: Week 5 Homework 35 pts Save Score: 0 of 1 pt 14 of 35 (32 complete) HW Score: 87.62%, 30.67 of 35 pts Appendix Test A 4 The table shows some data for an island economy which produces only herbal teas and hot chocolate The base year is 2012. Calculate real GDP in 2012 and real GDP in 2013 using the chained-dollar method. Real GDP in 2012 using the chained-dollar method is Question Help In 2012 Item Herbal teas Hot chocolate Quantity 93 59 Price $3 each $6 each In 2013 Item Herbal teas Hot chocolate Quantity Price $9 each $4 each 67 Enter your answer in the answer box and then click Check Answer part Clear All Check Answer 14% 2:23 PM Type here to search 11/24/20173Explanation / Answer
SOLUTION:
Item
Quantity
Price
MV
Herbal teas
93
3
279
Hot chocloate
59
6
354
Nominal GDP
633
Item
Quantity
Price
Herbal teas
111
9
999
Hot chocloate
67
4
268
Nominal GDP
1267
year-2013 quantity and year 2012 price
Item
Quantity
Price
Herbal teas
111
3
333
Hot chocloate
67
6
402
Nominal GDP
735
year-2012 quantity and year 2013 price
Item
Quantity
Price
MV
Herbal teas
93
9
837
Hot chocloate
59
4
236
Nominal GDP
1073
Using 2012 prices, real GDP has grown by 735 - 633 / 633 =16.11%
Using 2013 prices, real GDP has grown by 1267 -1073/ 1073= 18.08%
The average growth rate of real GDP is equal to (16.11 + 18.08) / 2 = 17.10%
Square root of 735/633 * Square root of 1267/ 1073 = 1.077 * 1.087 = 1.17
Real GDP 2012 = 633 * 1.17 = 740.61
Real GDP 2013 = 1267 * 1.17 = 1482.39
Item
Quantity
Price
MV
Herbal teas
93
3
279
Hot chocloate
59
6
354
Nominal GDP
633
Item
Quantity
Price
Herbal teas
111
9
999
Hot chocloate
67
4
268
Nominal GDP
1267
year-2013 quantity and year 2012 price
Item
Quantity
Price
Herbal teas
111
3
333
Hot chocloate
67
6
402
Nominal GDP
735
year-2012 quantity and year 2013 price
Item
Quantity
Price
MV
Herbal teas
93
9
837
Hot chocloate
59
4
236
Nominal GDP
1073
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