Use the following information to answer questions 1-3 [be sure to provide all computations]

Quanity Prices

Year CD's Tennis Racquets CD's Tennis Racquets

2005 90 180 $18 $100

2006 100 190 $20 $110

Compute the value of the price index for GDP for 2006 using 2005 as base year. By what percent did prices rise?

Now calculate real GDP for 2005 and 2006 using 2006 prices. By what percent did real GDP grow?

Review the GDP data for the last few years from the Bureau of Economic Analysis's Website. Provide a brief summary of the GDP trends over that timeframe and discuss two or three events which may have caused these trends.

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Concepts in macroeconomics : As an worker of the World Bank you have been asked to research requires of a country with a particular economic concern. |

Compute the value of the price index for gdp : Compute the value of the price index for GDP for 2006 using 2005 as base year. By what percent did prices rise? |

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