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Between 1929 and 1933, NNP Measured in Current Prices Fell

question 151

Essay

Between 1929 and 1933, NNP measured in current prices fell from $96 billion to $48 billion. Over the same period, the relevant price index fell from 100 to 75.
a.What was the percentage decline in nominal NNP from 1929 to1933?
b.What was the percentage decline in real NNP from 1929 to 1933? Show your work.


Definitions:

Entrepreneurship

Risk-taking behaviour that results in new opportunities.

Economic Independence

The condition of having sufficient income or wealth to live without having to depend on support from others.

Small Business Failure Rates

The percentage of small businesses that cease operations within a certain period, often used as an indicator of the small business sector's health or economic conditions.

New Businesses

Enterprises that have been recently established, focusing on entering a market with innovative products or services.

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