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Essay

Calculating Gdp

Essay specific features

 

Issue:

Business

 

Written by:

Heidi M

 

Date added:

October 1, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 446

 

Was viewed:

2219 times

 

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Essay content:

Real GDP is defined as GDP adjusted for price changes (O'Sullivan, Sheffrin, & Perez, 2008). For all of our calculations we will be using the following table. CD’s Tennis Racquets CD’s Tennis Racquets 2005 90 180 $18 $100 2006 100 190 $20 $110 In this example we will be calculating real GDP using 2005 as a base year...
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Here is how the calculations break down. Nominal GDP 2005 90 X $18 = $1,620 180 X $100 = 18,000, $1,620 + $18,000 = $19,620 2006 100 X $20 = $2,000 190 X $110 = $20,900, $2,000 +$20,900 = $22,900 2006 at 2005 prices real GDP 100 X $18 = $1,800 190 x $100 = $19,000, $1,800+$19,000 = $20,800 ($20,800 -$19,620) /$19,620 = 0...
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