{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

eco 305

This preview shows pages 1–3. Sign up to view the full content.

Adebayo Adesina 106223646 QUESTION 1 a ) Per-capita gross investment Y = C + I + G Y = 4000 C = 1000 I = ? G= 1000 [4000 = 1000 + I + 1000] 4000-1000-1000=2000 b) Note: Not sure this question makes sense. Didn’t we just solve for investment in 2001? 4000 x .1 = 3600 3600 – 1000- 1000 = 1600 c) 3600 d) 6300 QUESTION 2. a) Nominal GDP Year 2000 (1000x100) + (20x100) = \$102,000 Year 2001 (1200x130) + (21 x 80) = \$157,600 Year 2002 (1400 x 170) + (22 x 120) = \$240,640 Year 2003 (1600 x 210) + (23 x 150) = \$339,650 b) Real GDP (BASE YEAR of 2002) Year 2000 (100 x 1400) + (100 x 22) = 142,200 Year 2001 (130 x 1400) + (80 x 22) = 183,760 Year 2002 (170 x 1400) + (120 x 22) = 240,640 Year 2003 (210 x 1400) + (150 x 22) = 297,300

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
C) Real Growth Rate REAL GROWTH RATE Year 2000 Year 2001 (183,760 – 142,200)/ 142,200 = .292 x 100 =29.2% Year 2001 Year 2002 (240,640 – 183, 760)/ 183,760 = .310 x 100 = 31% Year 2002 Year 2003 (297,300 – 240,640)/ 240,640 = .235 x 100 = 23.5% D) Nominal Growth Rate
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}