The table above gives the quantities and prices for a hypothetical economy that only produces sunglasses and sunscreen. What is the growth rate of Nominal GDP from 2000 to 2001?

Question

(1 point)
Responses

−106.25%
negative 106.25 percent

6.25%
6.25 percent

−6.25%
negative 6.25 percent

106.25%
106.25 percent

Answer 1

To calculate the growth rate of Nominal GDP from 2000 to 2001, we need the Nominal GDP values for both years. Nominal GDP is calculated as:

\[ \text{Nominal GDP} = \text{Quantity} \times \text{Price} \]

You would typically calculate it for each product in the economy, sum those values for both years, and then find the growth rate using the formula:

\[ \text{Growth Rate} = \frac{\text{GDP}{2001} - \text{GDP}{2000}}{\text{GDP}_{2000}} \times 100 \]

However, since I do not have access to the specific quantities and prices from the table you mentioned, I can't calculate the growth rate directly.

Please provide the quantities and prices for both years so I can help you calculate the growth rate of Nominal GDP.