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zepelin [54]
3 years ago
9

Suppose an economy’s entire output is cars. in year 1, all manufacturers produce cars at $15,000 each; the real gdp is $300,000.

in year 2, 20 cars are produced at $16,000 each. what is the real gdp in year 2?
Business
2 answers:
Ahat [919]3 years ago
7 0

The real GDP in the year 2 is $300,000.

adelina 88 [10]3 years ago
3 0
Formula for the Real GDP:
RGDP = Quantity in the current year x Price of the output in the base year
The base year should be the 1st year:
RGDP 1 = $300,000,  P 1 = $15,000
Q 1st = $300,000 : $15,000 = 20 cars
In the 2nd year we also have: Q 2nd = 20,produced at $16,000 each.
The Nominal GDP = 20 x $16,000 = $320,000 ( market value )
But the Real GDP = 20 x $15,000 = $300,000.
Answer: The real GDP in the year 2 is $300,000.
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In this case the perfect tender rule

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Explanation:

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4 0
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What is the price of a coupon bond that has annual coupon payments of $75, a face value of $1000, interest rate of 5%, and a mat
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$1,046.49.

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The price of a coupon bond that has periodic coupon payments of $75, a face value of $1000, an interest rate of 5%, and a maturity of two times is $1,046.49.

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6 0
1 year ago
Cuso Company purchased equipment on January 1, 2016, at a total invoice cost of $400,000. The equipment has an estimated salvage
grigory [225]

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D. $156,000

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5 0
2 years ago
Zirconia Fantasy sells only necklaces. 8 comma 000 units were sold resulting in $ 240 comma 000 of sales​ revenue, $ 60 comma 00
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