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In 1980, the nominal value of GDP was R15400 million, while in 2000, the nominal value of GDP was R17690 million. Using 1970 as the base year (i.e GDP deflator of 1970 = 100), the GDP deflator of 1980 was 136 and the GDP deflator of 2000 was 162. Using 1970s prices, we can say that real GDP between 1980 and 2000 has:
A. Increased by approximately R2290 million
B. Increased by approximately R400 million
C. Decreased by approximately R 2300 million
D. Cannot be answered with the given information
E. Decreased by approximately R400 million
 one year ago
 one year ago
In 1980, the nominal value of GDP was R15400 million, while in 2000, the nominal value of GDP was R17690 million. Using 1970 as the base year (i.e GDP deflator of 1970 = 100), the GDP deflator of 1980 was 136 and the GDP deflator of 2000 was 162. Using 1970s prices, we can say that real GDP between 1980 and 2000 has: A. Increased by approximately R2290 million B. Increased by approximately R400 million C. Decreased by approximately R 2300 million D. Cannot be answered with the given information E. Decreased by approximately R400 million
 one year ago
 one year ago

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gregoryojano125Best ResponseYou've already chosen the best response.0
E. Decreased by appr. R400M
 one year ago

vinrarBest ResponseYou've already chosen the best response.0
E. Decreased by approximately R400 million real gdp of 1980 = nominal gdp / gdp deflator.=15400/1.36=11323.49 real gdp of 2000 = nominal gdp / gdp deflator.=17690/1.62=10919.749 so gdp has decreased by 403.73M hence option E
 one year ago
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