Economics Assignment

Running head: Economics Assignment
Economics Assignment
Name of the Student
Name of the University
Student ID

Economics Assignment1
Table of Contents
Answer 1..........................................................................................................................................2
Answer 2..........................................................................................................................................3
Answer 3..........................................................................................................................................5
Answer 4..........................................................................................................................................6
Answer 5..........................................................................................................................................6

Economics Assignment2
Answer 1
(a) Nominal GDP for Year 1 is given by summation of total value of X, Y and Z of year 1.
Nominal GDP for year 1= ( 150× 20 ) + ( 10 ×1 ) +(12× 4)
¿ , Nominal GDP for year 1=3000+ 10+48
¿ , Nominal GDP for year 1=$ 3 0 58
Nominal GDP for Year 2 is given by summation of total value of X, Y and Z of year 2
Nominal GDP for year2= ( 200 ×20 ) + ( 12 ×3 ) +(9 ×5)
¿ , Nominal GDP for year 2=4 0 00+ 36+45
¿ , Nominal GDP for year 2=$ 4 0 91
(b) Percentage of growth in nominal GDP from Year 1 to Year 2
Percentage growth∈GDP ¿ year 1¿ year 2=(4 0 91−3 0 58)
3 0 58 ×100
¿ , Percentage growth∈GDP ¿ year 1¿ year 2= 1 0 33
3 0 58 × 100
¿ , Percentage growth∈GDP ¿ year 1¿ year 2=33 . 78 %
(c) CPI of Year 2 is given by
CPI Year 2= 221
172 ×100
¿ , CPI Year 2=128.49
Therefore, inflation rate is 28.49%