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Calculating percentage change in Real GDP

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Consider the following data

Year CPI GDP
2005 100 345
2006 126 349
2007 136 424
2008 146 526

Compute the percent change in real GDP from 2006 to 2007.

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Solution Summary

Solution describes the steps for calculating percentage change in real GDP.

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Solution:

Real GDP in in 2006=349*100/CPI in 2006=349*100/126=276.9841
Real GDP in in ...

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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