Nominal GDP (Billions) 14,964.4 1,551.6 16,155.3 1,668.9 17,393.1 18,036.6 Real GDP (Billions) 14,786.9 15,020.6 15,354.7 15,612.2 15,982.2 163.9 Price Index (Year 0 = 100) 101.2 103.3 106.9 110 1.1 108.8
Nominal GDP (Billions) 14,964.4 1,551.6 16,155.3 1,668.9 17,393.1 18,036.6 Real GDP (Billions) 14,786.9 15,020.6 15,354.7 15,612.2 15,982.2 163.9 Price Index (Year 0 = 100) 101.2 103.3 106.9 110 1.1 108.8
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Fill in the missing values in the table below.
Instructions: Round your answers to 1 decimal place.
Expert Solution
Step 1
Real and nominal GDP:
Gross domestic product or GDP is the total sum of the values of all end commodities produced within an economy in a year.
Nominal GDP is calculated by taking the current market price level into account.
Whereas, real GDP is calculated by taking the base-year price level into account
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