Suppose Nominal GDP Was $12,623

question 109

Essay

Suppose nominal GDP was $12,623.0 billion in 2005 and was $13,377.2 billion in 2006. If the GDP deflator for 2006 (with a base year of 2005) was 103.237, what is the growth rate of real output between 2005 and 2006? Show your calculations.

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Definitions:

Special Journals

Special journals are accounting journals designed for recording and detailing types of financial transactions that occur frequently within a business, such as sales, purchases, cash receipts, and cash disbursements.

Information Needs

The specific data and information required by individuals or organizations to make informed decisions.

Accounting System

A systematic process of recording, summarizing, analyzing, and reporting financial transactions of a business to provide an accurate financial picture.

E-Commerce

Refers to the buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions.