Share
Explore BrainMass

alculating nominal GPA for year 4 and Real GDP for year 5.

I need help calculating nominal GPA for year 4 and Real GDP for year 5.

Units of Price
Year Output Per Unit

1 3 3
2 4 4
3 6 5
4 7 7
5 8 8

1. Refer to the above data. If year 3 is chosen as the base year, what is the price index for year 1
2. Refer to the above data. What is the nominal GDP for year 4?
3. Refer to the above data. What is real GDP for year 5?
4. Refer to the above data. In determining real GDP, which year(s) must the nominal GDP be inflated and which year(s) must the nominal GDP be deflated?

Attachments

Solution Preview

1. Refer to the above data. If year 3 is chosen as the base year, what is the price index for year 1
Price index of year 1 = (Price of the consumption basket in the current year)/(price of the basket in the base year) = (3*3)/(6*5) * 100 = (9/30) * 100 = 30
No consumption basket was defined, but the ...

Solution Summary

Steps for calculating nominal GPA for year 4 and Real GDP for year 5 are embedded.

$2.19