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
Before coin and paper money, how did people people exchange goods and services
Answers (2)
Haack Inc. is a merchandising company. Last month the company's cost of goods sold was $61,200. The company's beginning merchandise inventory was $12,400 and its ending merchandise inventory was $22,000.
Answers (1)
Trend-Line Inc. has been growing at a rate of 6% per year and is expected to continue to do so indefinitely. The next dividend is expected to be $5 per share. a.
Answers (1)
A local Best Buy sells 8 times as many iPods as Sears. The difference between their sales is 490 iPods. How many iPods did each sell?
Answers (1)
Prepare summary journal entries to record the following transactions for a company in its first month of operations. a. Raw materials purchased on account, $94,000. b. Direct materials used in production, $40,500. c.
Answers (1)
New Questions in Business
How did whirlpool use capabilities of text analytics to better understand their customers and improve product offerings?
Answers (1)
When a tax is levied on buyers of tea, a. buyers of tea and sellers of tea both are made worse off. b. buyers of tea are made worse off, and the well-being of sellers is unaffected. c.
Answers (1)
Which of the following is not correct? a. A tax places a wedge between the price that buyers pay and the price that sellers receive. b. In the new after-tax equilibrium, buyers and sellers share the burden of the tax. c.
Answers (1)
The major benefit of diversification is the: a. increased expected return. b. removal of all negative risk assets from the portfolio. c. reduction in the portfolio's total risk. d. reduction in the portfolio's systematic risk.
Answers (1)
Dougherty Corporation purchased a new delivery van for use in its dry-cleaning business. As part of the purchase of the van the following costs were incurred: Acquisition cost 30,000, Sales tax 1,800, Title transfer 250, paid to the company logo on
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?