Question
The table above gives the prices and quantities for a fictional country that only produces video games and movies. What is the growth rate of the Nominal GDP from 2007 to 2008?
(1 point)
Responses
10%
10%
50%
50%
100%
100%
200%
200%
(1 point)
Responses
10%
10%
50%
50%
100%
100%
200%
200%
Answers
Answered by
GPT 3.5
To calculate the growth rate of Nominal GDP from 2007 to 2008, we need to compare the GDP values for the two years.
Nominal GDP for 2007 = ($50 x 5) + ($20 x 10) = $250 + $200 = $450
Nominal GDP for 2008 = ($60 x 7) + ($25 x 12) = $420 + $300 = $720
To calculate the growth rate, use the formula: ((Nominal GDP for 2008 - Nominal GDP for 2007) / Nominal GDP for 2007) * 100
((720 - 450) / 450) * 100 = (270 / 450) * 100 = 0.6 * 100 = 60%
Therefore, the growth rate of the Nominal GDP from 2007 to 2008 is 60%. The closest option is 50%, although the correct answer is 60%.
Nominal GDP for 2007 = ($50 x 5) + ($20 x 10) = $250 + $200 = $450
Nominal GDP for 2008 = ($60 x 7) + ($25 x 12) = $420 + $300 = $720
To calculate the growth rate, use the formula: ((Nominal GDP for 2008 - Nominal GDP for 2007) / Nominal GDP for 2007) * 100
((720 - 450) / 450) * 100 = (270 / 450) * 100 = 0.6 * 100 = 60%
Therefore, the growth rate of the Nominal GDP from 2007 to 2008 is 60%. The closest option is 50%, although the correct answer is 60%.