-The Table Gives Data on the Production and Prices in a Small

question 248

Essay

-The table gives data on the production and prices in a small economy.Use 2012 as the base period.
a.What does nominal GDP equal in 2012?
b.What does real GDP equal in 2012?
c.What does nominal GDP equal in 2013?
d.Using the chained-price method,what does real GDP equal in 2013?

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Definitions:

Refunding

The process of replacing an old debt with a new one, often with terms that are more favorable to the debtor, such as lower interest rates or extended maturity dates.

Bought Deal

A financing arrangement where an investment bank buys an entire new issue of securities from a company and resells it to investors.

Underwriter

A person or organization that evaluates and assumes the risk of another entity, often involved in issuing new securities as part of public offerings.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership such as options.