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    Quantitative Reasoning Explanations

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    Show your work at the end of the problems (Excel functions count as work but must be visible from the cell)
    The following table shows a nominal GDP and an appropriate price index for a group of selected years.
    Compute real GDP. Indicate in each calculation whether you are inflating or deflating the nominal GDP data.

    1 Year Nominal GDP, $B Price Index Real GDP, $B
    (1996 = 100)
    1960 527.4 22.19 $x x
    1968 911.5 26.29 $x x
    1978 2295.9 48.22 $x x
    1988 4742.5 80.22 $x x
    1998 8790.2 103.22 $x x

    Suppose an economy's real GDP is $30,000 in year 1 and $31,200 in year 2.

    2 What is the growth rate of its real GDP? x

    3 Assume that population is 100 in year 1 and 102 in year 2.
    What is the growth rate of GDP per capita? x

    If the CPI was 110 last year and is 121 this year

    4 What is this year's rate of inflation? x

    5 Describe in words - what is the "rule of 70"? x

    6 How long would it take for the price level to double if inflation persisted at
    2% per year x
    5% per year x
    10% per year x

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    https://brainmass.com/business/strategy-and-business-analysis/quantitative-reasoning-explanations-308258

    Solution Preview

    quantitative reasoning
    Show your work at the end of the problems (Excel functions count as work but must be visible from the cell)
    The following table shows a nominal GDP and an appropriate price index for a group of selected years.
    Compute real GDP. Indicate in each calculation whether you are inflating or deflating the nominal GDP data.

    1 Year Nominal GDP, $B Price Index Real GDP, $B
    (1996 = 100)
    1960 527.4 22.19 $x x
    1968 911.5 26.29 $x x
    1978 2295.9 48.22 $x x
    1988 4742.5 80.22 $x x
    1998 8790.2 103.22 ...

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