Ask Question
BusinessBusiness
27 May, 14:06

Suppose that, during 2012, nominal GDP was $10,082 billion. During 2012, the value of the Consumer Price Index was 177.1 (using 1999 as the base year). Estimate the real GDP for 2012.

+3
Answers (2)
  1. 27 May, 15:06
    0
    Answer: Real GDP for 2012 is $5,692.83 billion

    Explanation: Real GDP is a measure of the output of goods and services in an economy taking into consideration prices changes (inflation and deflation). Real GDP is calculated usinf prices of a base year not current prices.

    Real GDP = Nominal GDP/CPI * 100

    = $10,082 billion / 177.1 * 100

    = $5,692.83 billion
  2. 27 May, 16:11
    0
    5,692.83 3.

    Explanation:

    ($10,082 billion/177.1) x 100 = 5,692.83

    Remember the real GDP takes into account the value of the total number of goods and services produced by a country in a given year, while taking the effect of inflation into account.

    Because of inflation the consumer price index data is used in the calculation to find the change or deflation that has occurred.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Suppose that, during 2012, nominal GDP was $10,082 billion. During 2012, the value of the Consumer Price Index was 177.1 (using 1999 as the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
is the sole proprietor of Prestigious Pups , a business specializing in the sale of high-end pet gifts and accessories. Prestigious Pups ' sales totaled $ 986 comma 000 during the most recent year.
Answers (1)
An agribusiness company that owns farms and food processing plants represents which of the following concepts? A. oligopoly B. monopoly C. vertical integration D. horizontal consolidation
Answers (2)
If capacity is expensive and inventory is cheap, a good reason to hold inventory is to level load capacity by using inventory as a buffer between demand variability and capacity utilization. True or False?
Answers (1)
Dobbins resources pays sales commissions of $2 per unit and shipping costs of $0.75 per unit. if dobbins expects to sell 12,000 units in the third quarter, what will their total variable expenses be
Answers (1)
Floramaria is an elderly woman who lives with her niece galaxy. floramaria is dependent on galaxy for support. galaxy advises floramaria to "invest" in galaxy's "professional gambling" venture, or galaxy will no longer support her.
Answers (1)
New Questions in Business
When president obama was elected, the u. S. Economy had slid into a recession. Consumer spending was low and getting worse.
Answers (1)
Continental foods is considering a conglomerate merger with a company that makes storage solutions. a likely reason is:
Answers (1)
Earned value is: a. A cost estimate of the budgeted resources across the project's life cycle. b. The cumulative total costs incurred in accomplishing the various project work packages. c.
Answers (1)
13. Which of the following is an example of secondary research? A. Gathering statistics online B. Conducting trial-and-error testing C. Observing reactions to free samples D. Hiring a marketing firm
Answers (1)
Arrow Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Arrow's sales are for credit (no cash is collected at the time of sale).
Answers (1)
Home » Business » Suppose that, during 2012, nominal GDP was $10,082 billion. During 2012, the value of the Consumer Price Index was 177.1 (using 1999 as the base year). Estimate the real GDP for 2012.
Sign Up Forgot Password?