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Essay Details:
Essay text:
In the following example data set the income approach was used to determine the GDP for 2005 and 2006.
2005: (90 x $18) + (180 x $100) or the quantity of the CD’s times the Price of the CD’s plus the Quantity of the Racquets times the price of the Racquets. = $19,620
2006: (100 x $20) + (190 x $110) or the quantity of the CD’s times the Price of the CD’s plus the Quantity of the Racquets times the price of the Racquets. = $22,900
The following calculation was used to calculate the GDP for growth between 2005 and 2006 using the 2006 prices were as follows:
($22,900-$19,620) / 19,620
3280 / 19,620
0...
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