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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.

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

#### Solution Preview

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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 ...

#### Solution Summary

The growth of GDP is portrayed.

\$2.49