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13 October, 07:36

A country's nominal GDP increases from $360 billion to $404.16 billion, and its real GDP increases from $320 billion to $336.8 billion. Based on this information the country's production of goods and services increased by % and the prices of the goods and services produced increased by %. Enter numbers rounded to two decimal places.

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  1. 13 October, 09:05
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    Prices of goods produced increased by : 20.0%

    Quantity of good produced increase by : 5.25%

    Explanation:

    Nominal GDP is the Gross Domestic Product measured in current prices. Changes

    Prices of goods increased by

    = (A - B) / B * 100

    A-nominal GDP in current year

    B-Real GDP in Current year

    = (404.16 - 336.8) / 336.8 = 20%

    Real GDP is the amount by the quantity of goods and services in an economy has increased over a period of time.

    Change in real GDP =

    = (C - D) / D * 100

    C-Real GDP in current year

    D-Real GP in previous year

    = (336.8 - 320) / 320 * 100

    = 5.25%
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