65 871
Assignments Done
99,1%
Successfully Done
In October 2018

Answer to Question #49170 in Macroeconomics for JANELLE NURSE

Question #49170
IN 2012, AZANIA HAD A NOMINAL GDP OF $6.6 MILLION. INFLATION RATE WITH 2011 AS THE BASE YEAR WAS 105. IN 2013 THE COUNTRY'S NOMINAL GDP INCREASED TO $6.9 MILLION WITH INFLATION RATE OF 120 ON THE BASIS OF THE SAME 2011 BASE YEAR. CALCULATE THE GROWTH OF REAL GDP BETWEEN 2012 AND 2013.
Expert's answer
GDPn(2012) = $6.6m, CPI(2012) = 105, GDPn(2013) = $6.9m, CPI(2013) = 120
Real GDP = Nominal GDP/CPI*100
Real GDP(2012) = 6.6/105*100 = $6.29 million
Real GDP(2012) = 6.9/120*100 = $5.75 million
Real GDP growth rate = (5.75 - 6.29)/6.29*100% = -8.6%

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions