Over a five-year period, (nominal) GDP in a nation increased from $10 trillion to $15 trillion, while the GDP price deflator increased from 100 to 125. Approximately how much is GDP in year five, stated in terms of year-one dollars?

The GDP in year five, stated in terms of year-one dollars, is approximately $12 trillion.

Explanation:

This can be calculate using the following formula:

Real GDP in year five = Nominal GDP in year five / (GDP price deflator in year five / GDP price deflator in year-one) (1)

Where;

Real GDP in year five = Amount of GDP in year five, stated in terms of year-one dollars = ?

Nominal GDP in year five = $15 trillion

GDP price deflator in year five = 125

GDP price deflator in year-one = 100

Substituting the into equation (1), we have:

Real GDP in year five = $15 / (125 / 100) = $15 / 1.25 = $12 trillion

Therefore, the GDP in year five, stated in terms of year-one dollars, is approximately $12 trillion.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

answer(b) revenue account which increases;