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%.
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 answer