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If the nominal rate of growth is 70% and inflation is 9% to for the 5 year let P the cross domestic production amount at the present year then the projected real GDP after 6 year is?
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If the nominal rate of growth is 70% and inflation is 9% to for the 5 ...
Calculating the Projected Real GDP after 6 Years

Given:

  • Nominal rate of growth = 70%

  • Inflation rate = 9%

  • Time period = 5 years

  • Current GDP = P



Steps to find the projected real GDP after 6 years:

Step 1: Calculate the Real Rate of Growth

  • Real Rate of Growth = Nominal Rate of Growth - Inflation Rate

  • Real Rate of Growth = 70% - 9% = 61%



Step 2: Calculate the Real GDP after 5 Years

  • Real GDP after 5 years = P * (1 + Real Rate of Growth)^5

  • Real GDP after 5 years = P * (1 + 61%)^5

  • Real GDP after 5 years = P * 4.22



Step 3: Calculate the Real GDP after 6 Years

  • Real GDP after 6 years = Real GDP after 5 years * (1 + Real Rate of Growth)

  • Real GDP after 6 years = P * 4.22 * (1 + 61%)

  • Real GDP after 6 years = P * 6.80



Therefore, the projected real GDP after 6 years is 6.80 times the current GDP (P).
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If the nominal rate of growth is 70% and inflation is 9% to for the 5 year let P the cross domestic production amount at the present year then the projected real GDP after 6 year is?
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If the nominal rate of growth is 70% and inflation is 9% to for the 5 year let P the cross domestic production amount at the present year then the projected real GDP after 6 year is? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If the nominal rate of growth is 70% and inflation is 9% to for the 5 year let P the cross domestic production amount at the present year then the projected real GDP after 6 year is? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If the nominal rate of growth is 70% and inflation is 9% to for the 5 year let P the cross domestic production amount at the present year then the projected real GDP after 6 year is?.
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