Answer Happy

Table 2.2 Year to: quantity of computers sold: 500,000 Price per computer: $ 6,000 Quantity of automobiles sold: 1,000,000 Price Per automobile: 12,000 Year t1 quantity of computers sold: 5,000,000 Price per computer: $2,000 Quantity of automobiles sold: 1,500,000 Price Per automobile: 20,000
4. a. Complete Columns 2-5 in the following table. Table 2-10 (1) (2) GDP Deflator (P) (3) % Change in P (4) Real GDP (Y) (5) (6) % Change Nominal in Y GDP (PY) (7) % Change in PY Year 2004 2005 b. According to the text, % Change in nominal GDP (PY)=% Change in P+ "% Change in Y. Using this approximation, the % Change in nominal GDP between 2004 and 2005 was approximately equal to. percent. c. Now use the exact data for nominal GDP to complete Column 6. Calculate the exact percentage change in Column 7 and verify your approximation in Part b.