Answer:
There were two causes that fostered maritime exploration sponsored by European states: on the one hand, mercantilism, and on the other, the spread of Islam in the Middle East.
Mercantilism was based on the fact that the economic well-being of states consisted of stocks of gold and silver. The theory assumed that the total wealth of a business is unchangeable, so that the profit of one signifies the inevitable loss of another. According to the theory, governments should have effective economic control by promoting the export and accumulation of precious metals, while reducing imports, especially through the use of excise duties. Thus, European nations began to promote maritime explorations, with the aim of finding new territories to exploit economically, as well as establishing new trade routes where to locate their products and generate greater wealth.
On the other hand, the expansion of Islam and the control of the Middle East by the Turks made the European nations have to look for new alternative routes to carry out trade, thus promoting the exploration of the seas.
Answer: $393
Explanation:
Real GDP is the nominal GDP after it is adjusted for inflation. When using the price index, it can be adjusted by the formula:
Real GDP = Nominal GDP for year 1 / Price index for year 1 * 100
= 550 / 140 * 100
= 392.8571
= $393
