M/C Question (1 Viewer)

[mattchan]

Hey, How do you do this type of question? The answer is C btw.

Also, if your given nominal GDP and the Consumer Price Index and want to work out the real GDP in Year 2.

eg.

Year GDP CPI
-----------------------------------
1 $100 120
2 $120 150

Is it $120 x 120 / 150 = $96? or is there another method.

Thanks

 

[HayleeKate]

Real GDP = Nominal GDP times Year 1 CPI over Year 2 CPI
So its just as you said: $120 x 120 / 150 = 96

 

[azza_3761]

Wat paper is that from??

 

[Jago]

Y = C + I

first row --> LHS = 0 , RHS = 1200
2nd row --> LHS = 1000 , RHS = 2000
3rd row --> LHS = 2000 , RHS = 2800
4th row --> LHS = 3000 , RHS = 3600

now it's not A since we've shown in the 2nd row that RHS > LHS
it's not B or D since we can see a pattern in the rows (RHS is increasing by 800 and LHS is increasing by 1000)

process of deduction.

 

[mattchan]

Wat paper is that from??

2003 Independent


Thanks for you help peeps