please see attachment
DEPARTMENT OF BUSINESS, ACCOUNTING AND SPORT MANAGEMENT
ECON 201- PRINCIPLES OF ECONOMICS I
ASSIGNMENT #5
Instructor: Dr. Kingsley Nwala
Questions: 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).
DEPARTMENT OF BUSINESS, ACCOUNTING AND SPORT MANAGEMENT