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ECON1220 HKU

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  • 8

    Numerical Example 1

    Note: The GDPs computed above are using the prices that prevail in the current period, hence, they are the nominal GDP.

    Goods and Services Current Price ( tP ) Quantity ( tQ ) Current Market Value ( tt xQP ) tGDP Nt

    Nttttttt QPQPQPQP ++++= .....

    332211 2004 (1) Converse running shoes (2) Nike running shoes (3) Truck

    $500 $400 $100,000 60 50 1

    30000 20000 100000 150000

    2007 (1) Converse running shoes (2) Nike running shoes (3) Truck $1,000 $800 $200,000

    60 50 1 60000 40000 200000

    300000

    2008 (1) Converse running shoes (2) Nike running shoes (3) Truck $1,500 $1,000 $200,000

    55 55 1 82500 55000 200000

    337500


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