# growth of GDP

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.