Suppose the country of altaria only produces one good, pink tutus. last year, nominal gdp was $50,000 and this year it is $200,0
00. what can we definitively conclude?
1 answer:
The complete question in the attached figure
Let
R------------------> nominal gdp last year---------- > $50,000
S------------------> nominal gdp this year---------- > $200,000
T------------------ > e<span>conomic growth rate
</span>
we know
T=[(S-R)/R]*100
therefore
T=[(200000-50000)/50000]*100=300%
T=300%
<span>that means that the GDP increased [300-100]=200%
</span>therefore
the answer is the option A) Output in Antaria quadrupled
Let
R------------------> nominal gdp last year---------- > $50,000
S------------------> nominal gdp this year---------- > $200,000
T------------------ > e<span>conomic growth rate
</span>
we know
T=[(S-R)/R]*100
therefore
T=[(200000-50000)/50000]*100=300%
T=300%
<span>that means that the GDP increased [300-100]=200%
</span>therefore
the answer is the option A) Output in Antaria quadrupled
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