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04-11-2022
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suppose input prices throughout the economy increase, pushing the price level up from 103 to 105 while nominal gdp increases from $76,000 to $80,000. what was the real gdp before the increase in input prices? round your answer to the nearest hundredth.

Answer :

shivanijain4931 shivanijain4931

08-11-2022

The real GDP before the increase in input prices was $73,786.41

Before increase in prices,

Real GDP = (Nominal GDP / Price level) x 100 = ($76,000 / 103) x 200 = $73,786.41

Gross domestic product is a monetary measure of the market cost of all the final goods and offerings produced and bought in a particular term by means of nations. because of its complicated and subjective nature this measure is regularly revised before being considered a dependable indicator.

GDP measures the economic fee of very last goods and services—that is, those which are sold via the very last person—produced in a rustic in a given time period (say 1 / 4 or a year). It counts all the output generated within the borders of a country.

Learn more about GDP here:https://brainly.com/question/1383956
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