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    growth of GDP

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    Use the following data to answer questions 1-3(be sure to provide all caculations).
    Quantities produced Prices
    Cds Tennis Racquets Cds Tennis Racquets
    2004 100 200 20 110
    2005 120 210 22 120
    1-Calculate the real GDP for year 2004 and 2005 using 2004 prices. By what percent did real GDP grow?
    2-Calculate the value of the price index for GDP for 2005 using 2004 as the base year. By what percent did prices increase ?
    3-Now calculate real GDP for 2004 and 2005 using 2005 prices. By what percent did real GDP grow?
    Provide a brief summary of the GDP trends over that timeframe and discuss two or three events which may have caused these trends.

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    https://brainmass.com/economics/price-levels/growth-of-gdp-43427

    Solution Preview

    --------------------------------------------------------------------------------
    Use the following data to answer questions 1-3(be sure to provide all caculations).
    Quantities produced Prices
    Cds Tennis Racquets Cds Tennis Racquets
    2004 100 200 20 110
    2005 120 210 22 120
    1-Calculate the real GDP for year 2004 and 2005 using 2004 ...

    Solution Summary

    The growth of GDP is portrayed.

    $2.19