Calculate the gdp price index


Question: All questions are based on this table.

YEAR     OUTPUT    PRICE                    GDP PRICE INDEX

1                   5             $35                         100

2                   7              $40                       114.29

3                   9             $45    

4                 10             $50     

(a) Based on this table, which year is considered the Base or Reference year?

(b) Calculate (Year3) GDP price index.

(c) If Nominal GDP in year 3 is $405, what is the Real GDP for Year 3? Please, you must use the formula below to calculate your answer. 

Real GDP Year 3 = Nominal GDP (Yr.3) ÷GDP price index Yr.3 (in hundredths).

Request for Solution File

Ask an Expert for Answer!!
Macroeconomics: Calculate the gdp price index
Reference No:- TGS03438808

Expected delivery within 24 Hours