To find the growth rate of Nominal GDP from 2007 to 2008, we need to calculate the percentage change in total expenditures.
Nominal GDP can be calculated by multiplying the price and quantity for each item, and then summing them up.
In 2007:
Video Games: $60 * 100 = $6,000
Movies: $15 * 20 = $300
Total GDP in 2007: $6,000 + $300 = $6,300
In 2008:
Video Games: $60 * 200 = $12,000
Movies: $12 * 50 = $600
Total GDP in 2008: $12,000 + $600 = $12,600
The growth rate can be calculated by dividing the difference in GDP by the initial GDP, and then multiplying by 100 to get the percentage.
Growth rate = ((Final GDP - Initial GDP) / Initial GDP) * 100
= (($12,600 - $6,300) / $6,300) * 100
= 100%
Therefore, the growth rate of Nominal GDP from 2007 to 2008 is 100%.
Use the table to answer the question.
2007 2008
Price ($) Quantity Price ($) Quantity
Video Games 60 100 60 200
Movies 15 20 12 50
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 Nominal GDP from 2007 to 2008?
(1 point)
Responses
6,300
6,300
200%
200 percent
100%
100 percent
12,600
1 answer