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mario62 [17]
3 years ago
7

1. Assume that nominal GDP for 2012 was $700B with a price index of 110 (using 2004 as the base year). What is the real GDP for

2012?
Remember: To compute the real GDP for any given year use this formula: Real GDP = Nominal GDP/Price Index x 100
2. Assume that nominal GDP for 2013 was $850B with a price index of 140 (using 2004 as the base year). What is the Real GDP for 2013?
Remember the formula: Real GDP = Nominal GDP/Price Index x 100
3. Did real GDP increase or decrease from 2012 to 2013? If it decreased, explain why. If it increased explain why. Compare your answers from question (1) and (2) above and answer question (3).
4. What are some reasons why Real GDP could decrease or increase in this example, and how a similar situation could impact the future economic growth or decline of the U.S. economy?
Business
1 answer:
Papessa [141]3 years ago
6 0
1. The real GDP is calculated using
<span>Real GDP = Nominal GDP/Price Index x 100
= $700 B / 140  x 100
= $500 B

2. Using the same formula
Real GDP = $850 B / 140  x 100
= $607 B

3. The real GDP increased because the price index and nominal GDP increased.

4. Real GDP will decrease when the price index would go down.</span>
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An internet company gives their old computer system to the computer science
Elanso [62]

Answer:

Explanation:

The formula for GDP is

GDP = C + I + G + NX

C = consumption

I  = Investment by business and household purchases by individuals

G = Government  Expenditures

NX = foreign trade.

The first thing you can do is knock out foreign trade.

I think you can dispense with Government expenditures as well all though a school is an arm of government.

I think investment is what you have to look at carefully because it does include charitable organizations.  We'll come back to this.

Consumption is what it sounds like it sounds.

You can't answer this in any other way than to know how the company writes it off. It is an asset that goes from some value to 0. It no longer exists on their books. So it decreases their assets. It is balanced on their books by calling it an expense I think and that further has impact on their books.

So they are decreasing their value (albeit by a small amount -- they've already bought new computers).

I'm not sure about this, but I think what has happened is that the GDP is going to go down. Their investment has decreased by being written off.

8 0
2 years ago
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Alenkinab [10]
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3 0
3 years ago
On December 31, 2018, AAA disposed an Equipment (Cost: $50,000, Salvage Value: $10,000, useful life: 4 years), which was purchas
levacccp [35]

Answer:

A Loss of $10,000

Explanation:

To calculate the depreciation using the straight line method.

Depreciation = Cost - Salvage value/ no. of years

   

       $50,000   -   $10,000/ 4 = $10,000

Annual depreciation now is:    $10,000

Net book Value (NBV) for the year of disposal i.e 2018 will be:

Cost - Accumulated Depreciation = NBV

$50,000 - $30,000 = $20,000

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but was sold for $10,000 which is a loss of $10,000

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vlabodo [156]

Answer:

lower

Explanation:

A natural monopoly appears when there are high entry costs like large infrastructure costs or economies of scale where a company can provide the products at a lower costs than others which provides a big advantage to the firm in the market and makes it difficult for any potential competitor to be able to compete. According to that, the answer is that a natural monopoly exists when a single seller experiences lower average total costs than any potential competitor as this represents a barrier for the competitor to be able to enter the market.

3 0
3 years ago
True or False (PLEASE ANSWER QUICK)
earnstyle [38]
It’s TRUE I took the test
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