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Essay

calculate real gdp economics

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Issue:

Business

 

Written by:

Nathan C

 

Date added:

June 11, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 617

 

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5421 times

 

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Essay content:

The real gross domestic product for 2004 is $19,980. In 2005, there were 120 compact discs sold at $20.00, and 210 tennis racquets sold at $95.00. The nominal gross domestic product (120 compact discs * $20.00 compact disc's pricing for 2005) + (210 tennis racquets * $95.00 tennis racquet's pricing for 2005) = 2,400 + 19,950 = $22,350...
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The real gross domestic product (120 compact disc's * $18.00 compact disc's pricing for 2004) + (210 tennis racquets * $90.00 tennis racquets pricing for 2004) = 2,160 + 18,900 = $21,060 gross domestic product for 2005 using 2004 prices. "Output in the economy can increase from one year to the next," (O'Sullivan & Sheffrin, 2006)...
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