Scribd Logo
Upload

Welcome to Scribd!

  • 4 views

    GDP

    Uploaded by

    gregbaccay
    The document discusses nominal GDP and real GDP calculations for an economy that produces only computers and automobiles for the years 2000 and 2019. Nominal GDP is calculated directly from sales volumes and prices for each year, while real GDP is calculated using price indices to adjust for inflation between the two years.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    GDP

    Uploaded by

    gregbaccay
    4 views1 page
    The document discusses nominal GDP and real GDP calculations for an economy that produces only computers and automobiles for the years 2000 and 2019. Nominal GDP is calculated directly from sales volumes and prices for each year, while real GDP is calculated using price indices to adjust for inflation between the two years.

    Original Title

    Gdp

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses nominal GDP and real GDP calculations for an economy that produces only computers and automobiles for the years 2000 and 2019. Nominal GDP is calculated directly from sales volumes and prices for each year, while real GDP is calculated using price indices to adjust for inflation between the two years.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    4 views1 page

    GDP

    Uploaded by

    gregbaccay
    The document discusses nominal GDP and real GDP calculations for an economy that produces only computers and automobiles for the years 2000 and 2019. Nominal GDP is calculated directly from sales volumes and prices for each year, while real GDP is calculated using price indices to adjust for inflation between the two years.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Suppose that an economy consists of only two types of products:

    computers and automobiles. Sales and price data for these two
    products for two different years are as shown below:

    Year No.of Price per No. Of Price per


    Computers computer Automobiles Automobile
    Sold Sold
    2000 500,000 P20,000 1,000,000 P500,000
    2019 5,000,000 P15,000 1,500,000 P700,000

    A. Assuming that all computers and automobiles are final goods,


    calculate nominal GDP in 2000 and in 2019.

    Nominal GDP2000 = 500,000 x P20,000 = P 10,000,000,000 (computers)


    Nominal GDP2000 = 1,000,000 x P500,000 = P 5,000,000,000,000
    (automobiles)
    P 510,000,000,000

    B. Calculate real GDP in 2000 and 2019, using 2000 as the base year.
    C. Calculate the percentage change in real GDP between 2000 and 2019
    using 2000 as the base year.
    D. Calculate real GDP in 2000 and 2019, using 2019 as the base year.
    E. Calculate the percentage change in real GDP between 2000 and 2019
    using 2019 as the base year.
    F. Explain why your answers to parts c and e are different. Do you
    feel there is one that more accurately measures the true growth in
    GDP? Which one, and why?

    You might also like