Answer :
To fill in the missing values for Nominal GDP in the table, we need to understand the relationship between Nominal GDP, Real GDP, and the Price Index. Here’s a step-by-step explanation:
1. Understand the Relationship:
- The formula to find Nominal GDP is:
[tex]\[
\text{Nominal GDP} = \text{Real GDP} \times \left(\frac{\text{Price Index}}{100}\right)
\][/tex]
- This formula tells us how the nominal GDP reflects the value of goods and services at current market prices, while the real GDP reflects the value at constant prices. The price index indicates the level of inflation compared to the base year.
2. Calculate Nominal GDP for Year 2:
- Given:
- Real GDP = \[tex]$15,020.6 billion
- Price Index = 103.3
- Apply the formula:
\[
\text{Nominal GDP} = 15,020.6 \times \left(\frac{103.3}{100}\right) = 15,516.3 \, \text{billion}
\]
- After rounding to one decimal place, the Nominal GDP for Year 2 is 15,516.3 billion.
3. Calculate Nominal GDP for Year 4:
- Given:
- Real GDP = \$[/tex]15,612.2 billion
- Price Index = 106.9
- Apply the formula:
[tex]\[
\text{Nominal GDP} = 15,612.2 \times \left(\frac{106.9}{100}\right) = 16,689.4 \, \text{billion}
\][/tex]
- After rounding to one decimal place, the Nominal GDP for Year 4 is 16,689.4 billion.
By following these calculations, we fill in the missing values for Nominal GDP as:
- Year 2: 15,516.3 billion
- Year 4: 16,689.4 billion
1. Understand the Relationship:
- The formula to find Nominal GDP is:
[tex]\[
\text{Nominal GDP} = \text{Real GDP} \times \left(\frac{\text{Price Index}}{100}\right)
\][/tex]
- This formula tells us how the nominal GDP reflects the value of goods and services at current market prices, while the real GDP reflects the value at constant prices. The price index indicates the level of inflation compared to the base year.
2. Calculate Nominal GDP for Year 2:
- Given:
- Real GDP = \[tex]$15,020.6 billion
- Price Index = 103.3
- Apply the formula:
\[
\text{Nominal GDP} = 15,020.6 \times \left(\frac{103.3}{100}\right) = 15,516.3 \, \text{billion}
\]
- After rounding to one decimal place, the Nominal GDP for Year 2 is 15,516.3 billion.
3. Calculate Nominal GDP for Year 4:
- Given:
- Real GDP = \$[/tex]15,612.2 billion
- Price Index = 106.9
- Apply the formula:
[tex]\[
\text{Nominal GDP} = 15,612.2 \times \left(\frac{106.9}{100}\right) = 16,689.4 \, \text{billion}
\][/tex]
- After rounding to one decimal place, the Nominal GDP for Year 4 is 16,689.4 billion.
By following these calculations, we fill in the missing values for Nominal GDP as:
- Year 2: 15,516.3 billion
- Year 4: 16,689.4 billion
