2000
2001
Quantity Price ($)
Quantity Price ($)
Sunglasses
80
10
100
12
Sunscreen
100
8
50
10
The table above gives the quantities and prices for a hypothetical economy that
only produces sunglasses and sunscreen. What is the growth rate of Nominal GDP
from 2000 to 2001?
(1 point)
0 -6.25%
O-106.25%
O 106.25%
O 6.25%

2.The GDP for a hypothetical economy is determined to be 6 billion dollars in year 1 and 7.5 billion dollars in year 2. What is the growth rate of GDP from year 1 to year 2?

-25%

3. Use the table to answer the question.

2000 2001

Quantity Price ($) Quantity Price ($)

Sunglasses 80 10 100 12

Sunscreen 100 8 50 10

The table above gives the quantities and prices for a hypothetical economy that only produces sunglasses and sunscreen. What is the growth rate of Nominal GDP from 2000 to 2001?

-6.25%

4. Which of the following formulas can be used to calculate the real GDP growth rate?

-real GDP growth rate=(quarter 2 real GDP )−(quarter 1 real GDP)/

(quarter 1 real GDP)×100

5. What is the difference between real GDP and nominal GDP?

-Real GDP is adjusted for inflation, while nominal GDP is not.

Explanation:

100% Correct

marvineetesh3 marvineetesh3 · Answer 2 · 2022-04-09T13:12:08+02:00

The full form of GDP is Gross Domestic Price. The growth rate of Nominal GDP is from year 2000 to 2001 is 6.25%.

What is Nominal GDP?

The term Nominal GDP is called the National Gross Domestic Product. It measures the output by using the current year prices.

Computation of Nominal GDP:

Nominal GDP of 2000:

Nominal GDP of Sunglasses:

[tex]=\text{Current Year Quantity Of Sunglasses} \times \text{Current Year Price Of Sunglasses }\\=80 \times 10\\=800[/tex]

Nominal GDP of Sunscreen:

[tex]=\text{Current Year Quantity Of Sunscreen} \times \text{Current Year Price Of Sunscreen }\\=100 \times 8\\=800[/tex]

Then, Nominal GDP of 2000 is 1,600 [tex](800+800)[/tex].

Nominal GDP of 2001:

Nominal GDP of Sunglasses:

[tex]=\text{Current Year Quantity Of Sunglasses} \times \text{Current Year Price Of Sunglasses }\\=100 \times 12\\=1,200[/tex]

Nominal GDP of Sunscreen:

[tex]=\text{Current Year Quantity Of Sunscreen} \times \text{Current Year Price Of Sunscreen }\\=50\times 10\\=500[/tex]

Then, Nominal GDP of 2001 is 1,700 [tex](1,200+500).[/tex]

Now Deduct the Nominal GDP of 2000 and 2001 to get the net GDP.

[tex]1,600-1,700 = 100[/tex]

Then, growth rate of Nominal GDP from 2000 to 2001 is:

[tex]=\dfrac{100}{1600}\times 100\\\\=6.28\%[/tex]

Therefore, the growth rate of Nominal GDP from 2000 to 2001 is 6.25%.

Learn more about Nominal GDP, refer to:

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