Economics question

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Nicholson1882
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#1
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Would be grateful for some help as to how you'd go about answering this.


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Work out the % increase in *real* GDP.

(in case the table formats weird: https://drive.google.com/file/d/1kKl...ew?usp=sharing)
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STPZ
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Real GDP = ( nominal GDP / Price Index ) x 100

So work out the Real GDP for both (2t/100 x100) and (2.4t/105 x100) then work out the percentage difference (new - old / old x100%).

I think this is right
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JudeKennedy
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First work out the percentage change in nominal GDP, (difference/ original) X 100. Then work out the change in price level over the same time frame using the same formula, then take away the percentage change of price level from the percentage change in nominal GDP, giving a value for change in Real GDP
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Nicholson1882
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(Original post by STPZ)
Real GDP = ( nominal GDP / Price Index ) x 100

So work out the Real GDP for both (2t/100 x100) and (2.4t/105 x100) then work out the percentage difference (new - old / old x100%).

I think this is right
yeah I had this in an exam and that's what I did.

(2.4 trillion / 105 ) x 100 = 2.2857 trillion

2.285 tr / 2 = 1.14

so 14.3%. Maybe messed up last bit.
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Nicholson1882
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(Original post by JudeKennedy)
First work out the percentage change in nominal GDP, (difference/ original) X 100. Then work out the change in price level over the same time frame using the same formula, then take away the percentage change of price level from the percentage change in nominal GDP, giving a value for change in Real GDP
Get 15% doing this, not sure why it's a different answer to the other method.
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