1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
True [87]
2 years ago
14

In an economy, the total expenditures for a market basket of goods in year 1 (the base year) were $5,000 billion. In year 2, the

total expenditure for the same market basket of goods was $5,500 billion. What was the GDP price index for the economy in year 2?
Business
1 answer:
deff fn [24]2 years ago
4 0

Answer:

The GDP price index for the economy in year 2 is 110.

Explanation:

It is given that the total expenditures for a market basket of goods in year 1 (the base year) were $5,000 billion.

Price of market basket in base year = $5000

In year 2, the total expenditure for the same market basket of goods was $5,500 billion.

Price of market basket in specific year = $5500

GDP price index:

\text{GDP price index}=\frac{\text{Price of market basket in specific year}}{\text{Price of market basket in base year}}\times 100

\text{GDP price index}=\frac{5500}{5000}\times 100

\text{GDP price index}=110

Therefore the GDP price index for the economy in year 2 is 110.

You might be interested in
Holly's Ham, Inc. sells hams during the major holiday seasons. During the current year 11,000 hams were sold resulting in $220,0
yuradex [85]
I’m not sure but I think it’s A
sorry if it’s wrong
6 0
2 years ago
Whatever, Inc., has a bond outstanding with a coupon rate of 5.87 percent and semiannual payments. The yield to maturity is 6.9
leonid [27]

Answer:

Market price of the bond = $912.53

Explanation:

YTM = 6.90%

Coupon rate = 5.87%

Number of compounding per year = 2

YTM Per perid = 0.0345

Years = 13

Number of period = 26 (Nper)

Par value = 1,000

Semi annual coupon rate = 0.02935

The semi annual coupon payment = Par value * Semi annual coupon rate = 1,000 * 0.02935 = $29.35

Market price of the bond = PV(YTM, Nper, Semi annual coupon payment,Par value)

Market price of the bond = $912.53

6 0
3 years ago
Which two advantages do home buyers have over renters?
Snowcat [4.5K]
Answers A and E seem correct. B makes no sense. C makes no sense. and my renters insurance was very cheap vs property insurance.
5 0
3 years ago
Read 2 more answers
Jewell-rung was a canadian corporation that imported and sold men's clothing wholesale. haddad was a new york corporation that m
Oxana [17]
<span>Lost profits are consequential damages. Haddad is right that a buyer may not recover consequential damages that it could have prevented by cover. But Jewell-Rung offered legitimate reasons for not covering: the only Lakeland garments now available to it were those made by Olympic. Olympic would not sell a competitor the garments at reasonable prices. Further, Jewell-Rung could not rely on the quality of the garments manufactured by a different company. Jewell-Rung's failure to cover was reasonable and the company was entitled to prove its lost profits. Jewell-Rung Agency, Inc. v. Haddad Organization, Ltd</span>
6 0
3 years ago
What is the casting of ballots for candidates from different parties for different offices in the same election? ]?
Alex_Xolod [135]
They cast them to be a better country 
3 0
2 years ago
Read 2 more answers
Other questions:
  • You work for Amazon and you are charged with building consumer awareness for the latest version of the firm’s Kindle reader. Wha
    7·1 answer
  • Which method of depreciation results in periodic depreciation expense that fluctuates from one period to the next, not necessari
    9·1 answer
  • Suppose the price of a tie rises from $45 to $55. using the midpoint method, what is the percentage change in price?
    13·1 answer
  • Which of the following is NOT true of credit cards?
    6·1 answer
  • A risk is something that causes the possibility of a loss.
    10·2 answers
  • 8. A major electronics firm holds various committee meetings to improve employee morale. However, upper management discovers tha
    14·2 answers
  • Type the leadership term that best describes each situation. Use each term only once.
    13·1 answer
  • Many economists argue that, in the long run, the economy self-corrects and achieves full employment. What is this argument calle
    9·1 answer
  • On December 31 of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimat
    10·1 answer
  • During the proofreading task of the completion stage of a business message, be sure to
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!