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Problem #3 SHOW ALL MATH>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Fill i

ID: 1168068 • Letter: P

Question

Problem #3   SHOW ALL MATH>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Fill in the blanks on this table:

                        Nominal GDP             Price level       Real GDP

Year                (billions)                     index               (billions)

1959                   494.2                        25.6                1,930.4

1964                   648.0                        _____              2,339.4

1967                   814.3                        30.3                2687.4

1973                1,349.6                        41.3                3267.7

1978                2,232.7                        _____              3,702.7

1988                4,900.4                        _____              4,716.5

1991                5,724.8                        117.6               4868.0

Explanation / Answer

Real GDP= (Nominal GDP/ Price)*100

Real GDP in 1964

2339.4=648*100/Price Level

Price Level=Nominal GDP/ Real GDP =648*100/2339.4= 27.70

Real GDP in 1978

3702.7=2232.7*100/Price Level

Price Level=Nominal GDP/ Real GDP =2232.7*100/3702.7= 60.30

Real GDP in 1988

4716.5=4900.4*100/Price Level

Price Level=Nominal GDP/ Real GDP 4900.4*100/4716.5=103.90

Nominal GDP     Price level    Real GDP Year (billions)   index   (billions) 1959 494.2 25.6 1930.4 1964 648.0 27.7 2339.4 1967 814.3 30.3 2687.4 1973 1349.6 41.3 3267.7 1978 2232.7 60.3 3702.7 1988 4900.4 103.9 4716.5 1991 5724.8 117.6 4868.0
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