Use the table to answer the question.
2007 2008
Price ($) Quantity Price ($) Quantity
Video Games 60 100 60 200
Movies 15 20 12 50
The table above gives the prices and quantities for a fictional country that only produces video games and movies. What is the growth rate of Nominal GDP from 2007 to 2008?
(1 point)
Responses
6,300
6,300
200%
200 percent
100%
100 percent
12,600
To find the growth rate of Nominal GDP from 2007 to 2008, we need to calculate the percentage change in total expenditures.
Nominal GDP can be calculated by multiplying the price and quantity for each item, and then summing them up.
In 2007:
Video Games: $60 * 100 = $6,000
Movies: $15 * 20 = $300
Total GDP in 2007: $6,000 + $300 = $6,300
In 2008:
Video Games: $60 * 200 = $12,000
Movies: $12 * 50 = $600
Total GDP in 2008: $12,000 + $600 = $12,600
The growth rate can be calculated by dividing the difference in GDP by the initial GDP, and then multiplying by 100 to get the percentage.
Growth rate = ((Final GDP - Initial GDP) / Initial GDP) * 100
= (($12,600 - $6,300) / $6,300) * 100
= 100%
Therefore, the growth rate of Nominal GDP from 2007 to 2008 is 100%.
To calculate the growth rate of Nominal GDP from 2007 to 2008, we need to find the change in nominal GDP between the two years and then calculate the percentage change.
The formula for calculating the growth rate is: ((Nominal GDP 2008 - Nominal GDP 2007) / Nominal GDP 2007) * 100
We don't have the values for Nominal GDP directly, but we can calculate it by multiplying the price and quantity for each category and summing them up.
For video games:
Nominal GDP 2007 = Price 2007 * Quantity 2007 = 60 * 100 = 6,000
Nominal GDP 2008 = Price 2008 * Quantity 2008 = 60 * 200 = 12,000
For movies:
Nominal GDP 2007 = Price 2007 * Quantity 2007 = 15 * 20 = 300
Nominal GDP 2008 = Price 2008 * Quantity 2008 = 12 * 50 = 600
Now we can calculate the total Nominal GDP for 2007 and 2008:
Nominal GDP 2007 = 6,000 + 300 = 6,300
Nominal GDP 2008 = 12,000 + 600 = 12,600
Now we can calculate the growth rate:
((Nominal GDP 2008 - Nominal GDP 2007) / Nominal GDP 2007) * 100 = ((12,600 - 6,300) / 6,300) * 100
= (6,300 / 6,300) * 100
= 100%
Therefore, the growth rate of Nominal GDP from 2007 to 2008 is 100%.
To find the growth rate of Nominal GDP from 2007 to 2008, we need to calculate the percentage change in the total value of video games and movies produced.
First, calculate the value of video games in 2007: Price ($) x Quantity = 60 x 100 = 6,000 dollars.
Next, calculate the value of movies in 2007: Price ($) x Quantity = 15 x 20 = 300 dollars.
Add the values of video games and movies in 2007 to get the total GDP for 2007: 6,000 + 300 = 6,300 dollars.
Now, calculate the value of video games in 2008: Price ($) x Quantity = 60 x 200 = 12,000 dollars.
Next, calculate the value of movies in 2008: Price ($) x Quantity = 12 x 50 = 600 dollars.
Add the values of video games and movies in 2008 to get the total GDP for 2008: 12,000 + 600 = 12,600 dollars.
To find the growth rate, use the formula: (new value - old value) / old value * 100.
Substitute the values into the formula: (12,600 - 6,300) / 6,300 * 100 = 100%.
Therefore, the growth rate of Nominal GDP from 2007 to 2008 is 100%.