Economics Today, Student Value Edition (18th Edition) (Pearson Series in Economics)
18th Edition
ISBN: 9780133920642
Author: Roger LeRoy Miller
Publisher: PEARSON
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Question
Chapter 9, Problem 11P
To determine
The rate of increase of the country’s nominal
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Suppose that in a particular country, nominal gross domestic product(GDP) grew by 8 percent and the GDP deflator increased by 10 percent. The country's growth rate of real GDP would be approximately equal to?
Consider an economy that produce only ice cream cones. In year 1, the quantity produce is 8 bars and the price is RM 2. In year 2, the quantity produced is 12 cones and the price is RM 3.50. In year 3, the quantity produced is 18 bars and the price is RM 4. Year 1 is the base year.
What is the percentage of growth rate of real GDP from year 2 to year 3?
Explain in detail.
Real GDP is a better measure of evaluating the economic growth of a nation than the nominal GDP.
Chapter 9 Solutions
Economics Today, Student Value Edition (18th Edition) (Pearson Series in Economics)
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