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please see attachmentDEPARTMENT OF BUSINESS, ACCOUNTING AND SPORT MANAGEMENTECON 201- PRINCIPLES OF ECONOMICS

please see attachment

DEPARTMENT OF BUSINESS, ACCOUNTING AND SPORT MANAGEMENT

ECON 201- PRINCIPLES OF ECONOMICS I

ASSIGNMENT #5

Instructor: Dr. Kingsley Nwala

Questions: All questions are based on this table.

YEAR

OUTPUT

PRICE

GDP PRICE INDEX

1

5

$35

100

2

7

$40

114.29

3

9

$45

4

10

$50

(a) Based on this table, which year is considered the Base or Reference year?

(b) Calculate (Year3) GDP price index.

(c) If Nominal GDP in year 3 is $405, what is the Real GDP for Year 3? Please, you must use the formula below to calculate your answer.

Real GDP Year 3 = Nominal GDP (Yr.3) ÷ GDP price index Yr.3 (in hundredths).

DEPARTMENT OF BUSINESS, ACCOUNTING AND SPORT MANAGEMENT

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