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
Traditional Bank has an issue of preferred stock with an annual dividend of $7.50 that just sold for $62 a share. What is the bank's cost of preferred stock?
Answers (1)
Proctor Inc. has a weekly payroll of $8,000 for a 5-day workweek, Monday through Friday. If December 31, the last day of the accounting year, falls on Wednesday, Proctor would make an adjusting entry that would a. increase wages expense $4,800. b.
Answers (1)
The following financial information is taken from the annual reports of the Jackson Company and the Pearce Company: Jackson Pearce Cash flow from operating activities $500,000 $1,500,000 Cash investment in property & equipment 150,000 480,0001.
Answers (1)
When does CMS have to release star ratings?
Answers (1)
On June 30, 2013, Blair Industries had outstanding $80 million of 8% convertible bonds that mature on June 30, 2014. Interest is payable each year on June 30 and December 31. The bonds are convertible into 6 million shares of $10 par common stock.
Answers (1)
New Questions in Business
Staples Advantage is what type of B2B organization?
Answers (1)
Liquidity refers to Group of answer choices the ease with which an asset is converted to the medium of exchange. the measurement of the intrinsic value of commodity money. the measurement of the durability of a good.
Answers (1)
Why is there overlap among markets for financial assets?
Answers (2)
In general, the supply chain starts with A. final customers at the retail store. B. the provider of basic raw materials. C. research and development. D. a distributor.
Answers (1)
True or false: the market for tomatoes does exhibit the two primary characteristics that define perfectly competitive markets.
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?