Chapter 2 national income accounting
Technical Problems
1. The text calculates the change in real GDP in 1996 prices in the following way:
[RGDP04 - RGDP96]/RGDP96 = [3.50 - 1.50]/1.50 = 1.33 = 133%.
To calculate the change in real GDP in 2004 prices, we first have to cal ...