In the year 2010, good A and good B ate quantities.

Quantity for A is 10 at the price of 20.
Quantity for B is 15 at the price of 30.

In 2015, the price of A rose to 35 at the same quantity of 10 while that of B rose to 40 at the same quantity of 15.

Now. Find the nominal GDP; consumer price index,and price consumption index

The Nominal GDP for 2010 and 2015 are 650 and 950 resp. CPI for 2015 using 2010 as base year is 150% with 50% changes.

In 2010, QA = 10 ( fixed quantity) at the price of 20, while Qb = 15 ( also a fixed quantity) at the price of 30.

In the new year, 2015, QA = 10 at PA = 35,while QB = 15 at Pb = 40.

Solutions

For CPI, we first have :

For 2010, QA*PA + QB*PB =........
For 2015, QA*PA + QB*PB=.......

2010 = (10*20) + (15*30) = 650
2015 = ( 10 *35) + ( 15*40) = 950

Now chose a base year.

In 2010, CPI = 650/650 * 100 = 100

In 2015, CPI = 950/650 * 100 = 146.153

These are the CPI s in different years.

For PCI, compare the percentage change to the base year to tgat of current year. U do this by subtracting 100 from CPI

So the percentage change in the price In 2010, QA = 10 ( fixed quantity) at the price of 20, while Qb = 15 ( also a fixed quantity) at the price of 30.

In the new year, 2015, QA = 10 at PA = 35,while QB = 15 at Pb = 40.

Solutions

For CPI, we first have :

For 2010, QA*PA + QB*PB =........
For 2015, QA*PA + QB*PB=.......

2010 = (10*20) + (15*30) = 650
2015 = ( 10 *35) + ( 15*40) = 950

Now chose a base year.

In 2010, CPI = 650/650 * 100 = 100

In 2015, CPI = 950/650 * 100 = 146.153

These are the CPI s in different years.

year 2015 is given as

146.153 - 100 = 46.153

So, PCI = 46.15

so, NGDP = 650 for 2010

and 950 for 2015

Laughing at myself. I didn't take into consideration quantity. I did it in basic stat when I was in year 2. Good of u! Who are u?

a graduate of economics, uniport