Ask Question
20 July, 01:57

Let's say that for 1998 real gdp was $4000 billion. then, in 1999, nominal gdp was $5445 billion, while the general price level increased 10 percent in 1999. given this information, the percentage change in real gdp from 1998 to 1999 is:

+2
Answers (1)
  1. 20 July, 02:24
    0
    The real GDP of 1998 = 4000

    Nominal GDP of 1999 = 5445

    real GDP = Nominal GDP / (100% + increase%) = 5445 / (100%+10%) = 4950

    Increase in real GDP = 4950 - 4000 = 950

    Percentage change = 950 / 4000 * 100 = 23.75 %
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Let's say that for 1998 real gdp was $4000 billion. then, in 1999, nominal gdp was $5445 billion, while the general price level increased ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers