### Economic Analysis Exercise**Base Year: 2012**- Current Year: 2013- Price Index for 2013: 101.7**Gross Domestic Product (GDP)**- **2012 GDP:** 38,500- **2013 GDP:** 43,100### Calculations Required1. **Real GDP Calculation:** - Determine the Real GDP for each year.2. **Percentage Change Calculations:** - Calculate the percentage change in nominal GDP. - Calculate the percentage change in real GDP.

Growth rate of GDP = {GDP (current year) - GDP (previous year) / GDP (previous year)}*100%

Answered: 2012 is the Base Year 2013 is the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Suppose the economy has only three goods and that the base year is 2015. Year Price of Burgers Quantity of Burgers Price of Soda Quantity of Soda Price of Shoes Quantity of Shoes 2015 $3.42 99 $2.27 192 $63.14 32 2016 $6.56 128 $2.75 212 $89.43 56 2017 $6.56 125 $1.53 157 $74.90 38 Refer to the table above showing data for an economy that produces only the goods shown. What is Nominal GDP for 2017? (Round your answer to two digits after the decimal without the dollar sign without commas and without $.)
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2012 is the Base Year 2013 is the Current Year Price Index = 101.7 2012 GDP = 38,500 2013 GDP = 43,100 --- What is Real GDP for each year? CALCULATE...