'Giving the sellers the price over the phone so they can think about it before you meet with them' would be the least effective course of action to take. Hence option D pertains to the right answer choice.
An offering price refers to the price at which certain products and services are offered for sale. In investments and finance, the offering price most often is defined as the per-share value at which 'publicly-issued securities' are made available for purchase by the investment bank during an IPO or initial public offering.
Based on the given context where you receive an offering price on a listing for less than the asking price, the least effective course of action to take would be giving the sellers the price over the phone so they can make a consideration over it before you meet with them.
"
Complete question is as follows:
when you receive an offer on a listing for less than asking price, which of these would be the least effective course of action to take?
A. Study the other terms of the offer so you can maximize the offer's benefits and minimize the lower price.
B. Set up a face-to-face meeting with the sellers as soon as possible.
C. Prepare additional documentation to take to the presentation.
D. Give the sellers the price over the phone so they can think about it before you meet with them.
"
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On january 1 providence, incorporated, issues $1,000,000 of 10 percent, 5-year bonds at par value. Complete the necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
The journal entry entering the dollar amount in debit or credit columns is
Date Particulars Debit Credit
01-Jan-19 Cash $10,00,000
Bonds Payable $10,00,000
The bond is issued for $1,000,000 and cash is received from that bond. Thus, a cash identifier is debited and a liability is created in this case. The accrued interest will be charged as interest expense at the end of the period.
Journal entry :A journal entry is the act of keeping or recording all economic or non-economic transactions. Transactions are listed in an accounting journal that shows the company's debit and credit balances. A journal entry can include multiple records, each of which is a debit or a credit. A journal entry is used to record a business transaction in a company's accounting records. A journal entry is usually recorded in the general ledger; alternatively, it can be recorded in a sub-ledger, which is then summarized and included in the general ledger
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from the guest presenter, elizabeth oates, director of consumer insights at ulta: approximately what percent of adults in the usa belong to at least 1 loyalty program?
Loyalty/reward program describes the gifts, special offers, and other incentives that businesses give to their clients as part of a plan to keep them coming back for more of their goods or services.
When creating a successful loyalty/reward program, a business should take into account the following three factors:Exclusivity, since if everyone in the program receives the same perks, the client won’t see any value in the program, and they need to feel special to be a part of it.Customer knowledge: By understanding your audience, you can make sure that the program will speak to their wants and desires and be relevant to them.Contribution to the brand is necessary since you must ensure that your brand is supported by all of your activities.
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an unscrupulous creditor might sell the right to collect the same debt to two different persons by assigning it to each of them. which one of the two innocent assignees is entitled to payment and why? (2 marks)
An assignable contract is a derivative contract that contains a clause allowing the holder to transfer the obligations and rights of the contract to another party or individual before the contract expires.
In the real estate market, there are also assignable contracts that permit the transfer of property.
An assignable contract is one that contains a clause allowing the contract's holder to assign, transfer, or otherwise dispose of the contract's obligations and rights to another party or individual before the contract's expiration date. The underlying asset would be available for delivery, and the assignee would be eligible to take advantage of all contract benefits prior to their expiration. However, any responsibilities or demands imposed by the contract must also be met by the assignee.Some options and futures contracts may have assignability. Additionally, real estate contracts that are assignable permit the transfer of property.Learn more about Contracts, here
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if interest rates decline, bondholders will earn . a. a higher current yield b. a higher maturity value on the maturity date c. no capital gain on the bond's maturity d. a lower rate of return on reinvested cash flows e. a lower coupon interest on the bond
The total rate of return that a bondholder anticipates earning if the bond is held until maturity is referred to as YTM in the context of bonds.
A single Bond's YTM formula is as follows:[Annual Interest plus [(FV-Price)/Maturity]] / [(FV+Price)/2] is the yield to maturity.
What is YTM, or yield to maturity?
If a bond is held until its maturity, the expected total return is known as yield to maturity (YTM).A long-term bond yield, yield to maturity is expressed as an annual rate.To put it another way, it is the bond's internal rate of return (IRR) if the investor holds onto the bond until maturity and all payments are made on time and are reinvested at the same rate.
Respect development is likewise alluded to as "book yield" or "reclamation yield."
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a city accounts for its capital acquisitions using encumbrances. when the city enters into a contract to acquire equipment, what journal entry should it make
A city accounts for its capital acquisitions using encumbrances. when the city enters into a contract to acquire equipment, Debit encumbrances: Credit budgetary fund balance reserved for encumbrances.
Acquisition of capital means the acquisition of assets, stock purchases, mergers, or other forms of investment by a group member for the purpose of long-term means a controlling transaction.
An acquisition is a transaction in which one company acquires and controls another company. These transactions are a central part of Mergers and Acquisitions (M&A), a corporate legal or financial career path focused on acquisitions, divestitures, and business integration.
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according to the capm, what is the market risk premium given an expected return on a security of 13.6%, a stock beta of 1.2, and a risk-free interest rate of 4%?
The market risk premium is 8%
What is the market risk premium?The difference between the anticipated return on a market portfolio and the risk-free rate is known as the market risk premium.It offers a numerical assessment of the additional return that market participants seek in exchange for the elevated risk.The slope of the security market line (SML) connected to the CAPM (capital asset pricing model) represents the market risk premium.Compared to the equity risk premium, which only takes the stock market into account, the market risk premium is broader and more diverse. The equity risk premium is frequently larger as a result.Calculation
Expected return on a security E(r) = 13.6%
Stock beta (b) = 1.2
Risk-free return R(f) = 4%
E(r) = risk-free return + stock beta * market risk premium
⇒ 13.6% = 4%+1.2* market risk premium
Therefore, market risk premium = 8%
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if i high tech firm wanted to set up operations in iran, what steps could it take to ensure that the subsidiary would not be expropriated? identify and describe three strategies that would be particularly helpful. how can you approach potential future changes in the political environment strategically? (ch.10)
This can entail finding a partner that depends on the parent company for crucial aspects of the business, like funding, research, and technology, so that there is no real motivation to keep the partner.
The company could, for example, find some Iranian allies in the area. The government would see the company more favorably as a result.
Additionally, by limiting the use of advanced technology, the company could make it less profitable for the Iranian government to seize its assets (since they would not have the option to copy any significant cutting edge advancements). The company may now create dependencies at last.
Project dependencies deal with managing and scheduling project tasks while taking their sequences and requirements into consideration. Task B will be referred to as dependent on Task A if it is necessary for Task A to be completed. This may seem easy now, but things can get complicated in projects with many interconnected tasks.Learn more about Dependencies, here
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true or false: assuming implicit costs are positive, each of the firms operating in this industry in the long run earns positive accounting profit.
False, assuming implicit costs are positive, each of the firms operating in this industry, in the long run, earns positive accounting profit.
industry: a collective of profitable businesses or establishments that create or provide products, services, or sources of income. industry are typically categorized in economics as primary, secondary, tertiary, and quaternary; secondary industries are additionally categorized as heavy and light. Obtaining raw materials involves primary industries like mining, agriculture, and fishing. A profit is an income that is given to the owner in an efficient market production process in accounting. The owner's primary interest in the income-formation process of market production is profit, which is a measure of profitability. Different profit metrics are frequently employed. The equation Total Revenue - Total Expenses = Profit makes calculating profit simple.
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the balance in accounts receivable at the beginning of the year amounted to $2,960. during the year, $9,800 of credit sales were made to customers. if the ending balance in accounts receivable amounted to $1,960, and uncollectible accounts expense amounted to $820, what is the amount of cash inflow from customers that would appear in the operating activities section of the cash flow statement? multiple choice $9,980 incorrect $9,800 $12,760 none of these answers are correct.
$9980 is the amount of cash inflow from customers that would appear in the operating activities section of the cash flow statement.
Sales Revenue + Beginning Accounts receivable = Total Receivable
Total Receivables - (Ending Accounts receivable + Uncollectable account) = Total cash collected from Accounts receivables
You can do it this way:
Add up sales and beginning receivables which will give you total receivables. then add up ending receivables and uncollectible account and reduce it from total receivables computed earlierUltimately it will give you Total cash collected from Accounts receivables.
Sales Revenue + Beginning Accounts receivable will give you the total Receivable.
$9,800+ $2,960= $12,760
Total Receivables - (Ending Accounts receivable + Uncollectible account) = Total cash collected from Accounts receivables.
$12,760-( $1,960+ $820)= $9980
$9980 is the total cash collected from Accounts receivables.
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edward is a partner in ens, ltd. the partnership generated a loss during the current year. edward's share of the loss was $7,000. how should edward handle the loss
Edward handle the loss of $7,000 for AGI.
How do find AGI?The total amount of revenue and earnings earned throughout the tax year, less certain adjustments to income, is known as adjusted gross income (AGI). Your AGI is shown on Line 11 of Forms 1040, 1040-SR, and 1040NR for tax year 2022. On older forms, it can be found on various lines.Gross income less adjustments to income is known as adjusted gross income (AGI). Your salary, dividends, capital gains, company revenue, retirement payouts, and other sources of income are all included in your gross income.It is used to determine taxable income, which is determined by subtracting itemized deductions and personal exemptions from AGI.To learn more about AGI refer to:
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with an interest of $24.31 and a principal of $3,500 for 100 days, using the ordinary interest method, the rate is: multiple choice 2.5% 25% 2.3% 23% none of these
ordinary interest calculated on a 360-day timeframe as opposed to a 365-day period. None of these are ordinary interest method.
Explain about the ordinary interest method?Simple (regular) interest, accumulated interest, and compound interest are the three different kinds of interest.
The calculation of ordinary interest uses the premise that there are thirty days in each month of the year. This results in a situation where the interest rate is applied based on 360 days.
While some banks don't employ the strategy for all loans, a sizable portion of institutions use ordinary simple interest in each of the survey's loan categories.
Most interest is often subject to federal taxation at the same rate as your taxable income, including: Deposit account interest, such as that on checking and savings accounts.
$3500 x 24.31 x 100/360 = $23,934.72
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question what is not a specific goal of u.s. economic policy? responses freedom freedom increased importation increased importation security security growth growth
The US economic policy does not specifically aim to promote entrepreneurship.
Explain about the Entrepreneurship?The process of starting, setting up, and operating a new company in order to make money while taking on financial risk is known as entrepreneurship.
A person who spots a need in the market and works to fill it is called an entrepreneur. The word has historically been used to describe a person who begins a business because they sense an economic opportunity in being able to meet a specified need.
An example of a small company enterprise might be a restaurant with only one location, a single grocery store, or a retail store where you may sell your handcrafted goods. These people typically invest their own money and are successful if their firm makes a profit, which they use to support themselves.
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Look up data on the current unemployment rate, inflation rate, and/or GDP growth rate. Based on your data, comment on the current state of the economy.
Visit the "U.S. Economy at a Glance" page of U.S. Bureau of Economic Analysis website (via bea.gov)Links to an external site. for the current data.
Post a brief paragraph responding to the discussion prompt above. Your post should use concepts presented in this module. Your post must be completed before you can see posts from your classmates.
Current dollar GDP increased 6.7 percent year on year, or $414.8 billion, to $25.66 trillion in the third quarter.
The national unemployment rate was 3.7 percent in October 2022.
What is unemployment rate?The unemployment rate is the proportion of workers in the labor force who are unemployed but actively looking for work. This measure excludes people who have not looked for work in the last four weeks.
Inflation is defined as an increase in the price of goods and services purchased by households. The rate of change in those prices is used to calculate it. Prices typically rise over time, but they can also fall (a situation called deflation).
The annual average rate of change in the gross domestic product (GDP) at market prices in constant local currency for a given national economy over a specified time period.
In this case, the percentages for the unemployment as well as the GDP of the United States is given above.
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how would you defend intermediaries to someone who said that eliminating them would save consumers millions of dollars?
The fact that marketing middlemen offer value far in excess of what they cost is why they have not been completely removed .
Market intermediates are organizations that are involved in the transaction of the product from the producer till the final customer purchases it. Market intermediaries can be either companies or individuals. At each stage, when future transit and inventory costs are imposed, the products are continuously changing who is in possession of them. Finally, the product is made a certain price at the retail store.
Although they present a challenge to businesses when they compete on price, intermediaries are essential since a large distribution network cannot be managed by a single company.
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what is the pool of money that is collected from a $3 check-off on the federal income tax form that is available to presidential candidates for campaign expenses?
To participate in the primary matching fund program, a presidential candidate must demonstrate broad support by raising more than $5,000 in matching contributions in each of 20 different states.
Moreover, under the Presidential Public Financing Program, eligible presidential candidates receive funds from the federal government to pay qualified expenses for their political campaigns in the primary and general elections.so thats whyTo participate in the primary matching fund program, a presidential candidate must demonstrate broad support by raising more than $5,000 in matching contributions in each of 20 different states. Candidates must agree to use public funds only for campaign expenses and must adhere to spending limits.
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which topic is generally covered in a negotiated labor-management agreement? group of answer choices management compensation grievance procedures management fringe benefits corporate pricing policy
In a normal negotiated labor-management agreement, topics like pay rates, work hours, employee benefits, and job rights and seniority are handled.
What are negotiations between labor and management called?Through collective bargaining, employees negotiate contracts with their employers to establish their terms of employment, including compensation, benefits, working conditions, hours, leave, workplace health and safety regulations, methods of juggling work and family obligations, and more.An approach to resolving issues at work is through collective bargaining. It is also the most effective way to increase wages in America.The right to collective bargaining is also recognised by international human rights conventions. The National Labor Relations Act of 1935 clarified the bargaining rights of the majority of other private-sector workers and established collective bargaining as the "policy of the United States."To Learn more About labor-management agreement refer to :
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the 2008 act that includes some regulations on the resale of goods is the: group of answer choices consumer product safety act. consumer product resale safety act. consumer product safety improvement act. consumer product resellers inclusion act.
The answer to the given question is Consumer Product Safety Improvement Act.
What is Consumer Product Safety Improvement Act?
The Consumer Product Safety Improvement Act (CPSIA) is an act to authorize consumer product safety standards and other safety concerns for children's products and to re-establish and develop the Consumer Product Safety Commission. The Act was signed into law on August 14, 2008. CPSIA makes consumer products safer by compelling that toys and infant products be tested to compulsory standards before they are sold.
The Consumer Product Safety Improvement Act (CPSIA) imposes new testing and documentation requirements, and regulates new acceptable levels of certain substances on producers of shoes, apparel, accessories and jewelry, personal care products, bedding, home furnishings, electronics and video games, toys, books, educational materials, school supplies and science kits. The Consumer Product Safety Improvement Act (CPSIA) also rises fines and states jail time for some offenses.
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During the coronavirus pandemic in 2020, demand for frozen pizza almost doubled without price changes for these products. Economists call this.
Due to significant shifts in demand and bottlenecks in farm labour, processing, transport, and logistics, the COVID-19 pandemic has put unprecedented strain on the food supply chains.
The majority of these disruptions are the result of measures taken to stop the virus's spread. Despite these stresses, food supply chains have shown remarkable resilience. As stockpiling behaviour decreased and supply chains adjusted to rising demand, grocery store shelves were restocked over time. Long lines at borders quickly disappeared as a result of policies that reduced pointless restrictions. Although the effects of COVID-19 are still being felt, experience to date demonstrates the value of an environment for open and predictable global trade to ensure that food can get where it is needed.
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which activity takes place once the design of the promotional program is complete? multiple choice question. generate promotion ideas set the promotion schedule execute the promotion set the promotion budget
Executing the promotion takes place once the design of the promotional program is completed.
There are a few key ways to maximise a promotional budget:
1. Set clear objectives and goals for the promotion. This will help to focus the budget and ensure that money is being spent in the most effective way possible.
2. Research the target audience thoroughly. This will help to identify the most effective channels and methods for reaching them.
3. Use data and analytics to track the results of the promotion. This will help to optimise the budget and ensure that the most successful elements are repeated in future promotions.
4. Keep a close eye on costs. This includes both the cost of the promotion itself and any associated costs such as production, shipping, and so on.
5. Leverage discounts and design deals. This can help to stretch the budget further and get more bang for your buck.
6. Be creative. Think outside the box to come up with unique and attention-grabbing ideas that will get people talking.
7. Plan ahead. The sooner you start planning the promotion, the more time you’ll have to find ways to save money.
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which statement is true of markup pricing? multiple choice it is not very effective at maximizing profits. it is one of the least used pricing tactics. it involves pricing a product higher than competitors in order to promote an image of superior quality. it is the most difficult of the pricing tactics to implement. it is estimated by adding a certain amount to the profit of a product to set the final price.
The statement true to markup pricing is It is estimated by adding a certain amount to the profit of a product to set the final price.
What is markup pricing ?The term "markup pricing" describes the discrepancy between an item's retail price and the cost to create and market it for sale. The markup is typically specified as a fixed percentage, and it is calculated by adding that to the item's real cost.You must factor in the particular expenses of exporting goods, such as transportation, customs tariffs, or intermediary margins, when determining markup pricing in international trade.The precise markup a company uses will vary based on its requirements, its type of business, and the sector it operates in. While some industries can afford to mark up their products and services by a relatively small percentage, others can afford to mark them up by a very large amount.Although they both aid in the analysis of the same transaction, markups and profit margins give you access to different kinds of data. A profit margin is the difference between revenue and cost of goods sold, expressed as a percentage of revenue.
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suppose a consumer is currently spending all of her available income on two goods: music cds and dvds. if the price of a cd is $9, the price of a dvd is $18, and she is currently consuming 10 cds and 5 dvds, what is the consumer's income?
The consumer's income is $180
Income is the money that an individual or organization receives in return for their services or goods. Depending on the context—such as taxation, financial accounting, or economic analysis—income may have a variety of definitions. For the majority of people, their total earnings include their wages and salaries, investment returns, pension payments, and other receipts. For businesses, income refers to the money made from selling goods and services as well as any interest or dividends paid on the company's cash holdings and reserves.
Price of cd = $9
Number of cd purchased = 10
Total money spent on CDs = 9*10 = $90
Price of DVD = $18
Number of DVD purchased = 5
Total money spent on dvd = 18*5 = $90
Total income = Money spent on dvd + Money spent on cd
= 90 + 90 = $180
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according to porter's five-force model, the degree to which a firm relies on one or a few suppliers will influence its ability to negotiate good terms. true false
A business analysis framework called Porter's Five Forces can help to understand why different industries are able to maintain varying levels of profitability.
What Are the Five Forces of Porter?An industry's vulnerabilities and strengths can be ascertained using Porter's Five Forces, a model that identifies and examines five competitive forces that affect every industry. The structure of an industry is typically identified using the Five Forces analysis to develop company strategy.Any sector of the economy can benefit from using Porter's model to better analyze industry rivalry and increase long-term profitability. After Michael E. Porter, a professor at Harvard Business School, the Five Forces concept was created.Porter's five forces are:There is conflict in the sector.Potential for new competitors to enter the marketInfluence of suppliersInfluence of consumersReplacement product risk.To Learn more About Porter's Five Forces refer to :
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The concept of in-groups and out-groups is an integral part of which leadership theory?.
The concept of in-groups and out-groups is an integral part of the leader-member exchange(LMX) theory.
leader–member trade (LMX) idea suggests that leaders and followers increase specific relationships based on their social exchanges, and the niceness of these exchanges within an employer can impact worker results.
LMX idea is the first-rate principle of management as in contrast to the other theories, it concentrates and talks about approximately specific relationships between the leader and every subordinate. LMX concept is a sturdy explanatory principle. LMX theory focuses our interest on the significance of verbal exchange in leadership.
foundation understanding. chief-member trade (LMX) advanced from the vertical dyad linkage (VDL) concept. added this precise management principle, which displays the vertical dyadic interplay among leaders and participants.
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dawn wants to join a new gym. she has seen flyers campus that promote a new gym in town. dawn decides to use the one free pass presented on the flyer to try out the gym to see if it will meet her needs. what stage of the consumer adoption process does this represent?
Product awareness, interest in the product, product evaluation, product testing, and product adoption are the five stages.
Consumers look for information about the product at this stage of the adoption process, which is known as the interest (information-gathering stage). Evaluation (step of consideration): The consumer chooses whether or not to try the new product at this point in the process. The process of consumer adoption begins with the product awareness stage. It describes the time when a potential consumer first learns about your good or service and begins to think about buying it. It's time to formally register your interest in becoming an adoptive parent and go through the first round of checks, now referred to as Stage One, once you have found an agency that you feel comfortable with.
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which pair of events illustrates an accurate cause-and-effect relationship? question 33 options: sacco and vanzetti trial ratification of the woman suffrage movement red scare demand for limits on immigration rebirth of the kkk formation of the populist party high food prices start of the great depression
Events illustrates an accurate cause-and-effect relationship---Red Scare demand for limits on immigration
Option B is correct.
Why is cause and effect important?Understanding cause and effect helps scholars know what happened in the story as well as why it happened is important. It's also a precious life skill because this is how we learn to understand the consequences of our conduct. A cause is an action or event that happens and results in another event or action passing.
What changed in Great Depression?Lasting nearly 10 times( from late 1929 until about 1939) and affecting nearly every country in the world, it was marked by steep declines in artificial product and in costs( deflation), mass severance, banking panics, and sharp increases in rates of poverty and homelessness.
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when determining levels of equity, individuals will often compare their input/output ratio with that of a comparison person. that person is labeled the
The determining levels of equity, individual will often compare their input/output ratio with that of a comparison person is referent
The person, thing, or idea that a word or expression designates, stands for, or refers to is known in English grammar as a referent (REF-ER-UNT). For instance, the term door in the sentence "The black door is open" refers to a specific black door, which is a real thing. Relates to or is referred to. particularly: what a symbol (such as a phrase or sign) denotes
The four levels of measurement, which can be ranked from low to high, are as follows: Nominal: The data can only be categorized. Ordinal: The information is classifiable and rank. Data can be evenly spaced, classified, and rated. Interval
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Wireless Solutions reports operating expenses of $835,000. Operating expenses include both rent expense and salaries expense. Prepaid rent increases during the year by $15,000 and salaries payable increases by $12,500. What is the cash paid for operating expenses during the year? (List cash outflows and any decrease in cash as negative amounts. )
Cash Paid for operating expenses during the year $830,000
What are operating expenses?
Operating expenses are costs that a business incurs to maintain its core operations on a daily basis.
In the above case
Total Operating Expenses reported by Wireless Solutions = $835,000
Increase in Prepaid Rent means ---during the year company has paid amount for prepaid expenses.
Increase in Salaries Payable means the salaries are outstanding and payment was not made by the company.
Operating expenses reported by company $835,000
Add: Increase in Prepaid expenses $15,000Less: Increase in Salaries Payable ($20,000)Cash Paid for operating expenses during the year $830,000
Hence, Cash Paid for operating expenses during the year $830,000
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which candidate for the position of ceo provides the best opportunity for strategic change to occur within the firm?
Someone from outside the firm and outside the firm's industry candidate for the position of CEO provides the best opportunity for strategic change to occur within the firm.
What part does management play in a change in strategy?
Companies can implement necessary changes with care and responsibility through strategic change management. The process of managing change in an organized, deliberate manner in order to fulfill organizational goals, objectives, and missions is known as strategic change management.
Effective leaders carry out the routine duties involved in developing and implementing a strategy. They create a strategic vision and mission, establish goals and objectives, build the tactics, put them into action, and then assess the results
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What term means that both management and employees strive to meet common objectives?.
When both management and employees strive to meet common objectives, it's called mutual commitment.
To be able to do mutual commitment in a business or organization, both management and employees need to appreciate each others' work and roles. It occurs as a part of the reciprocal process in a business or organization where the focus is on others before self. There are some things that must be taken care of to create mutual commitment:
Make sure that people are valued through meaningful work.Develop a sense of belonging for each member. Align objectives and goals, both personal and corporate, to achieve shared mutual commitments.Learn more about mutual commitment at https://brainly.com/question/14104754
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the following table shows prices and quantities in the hypothetical economy of moneyville for two different items in two different years. assume these are the only two items produced in this economy. prices and output in a two-item economy good 1 good 2 year price output price output year 1 $5 50 10 25 year 2 9 40 15 10 instructions: enter your answers as a whole number. a. calculate nominal gdp for year 1 and year 2. year 1 nominal gdp: $ 500 year 2 nominal gdp: $ 510 nominal gdp increases between year 1 and year 2. b. calculate real gdp for year 1 and year 2 using year 1 as the base year. year 1 real gdp: $ year 2 real gdp: $ real gdp decreases between year 1 and year 2.
Assume these are the only two items produced in this economy.Real GDP redused between 1st year and 2nd year.
Nominal GDP year 1 = Price (Good 1) (Year 1) x Quantity (Good 1) (Year 1) + Price (Good 2) (Year 1) x Quantity (Good 2) (Year 1) = 8*30 + 11*20 = 240 + 220 = 460
Nominal GDP year 2 = Price (Good 1) (Year 2) x Quantity (Good 1) (Year 2) + Price (Good 2) (Year 2) x Quantity (Good 2) (Year 2) = 16*20 + 15*18 = 320 + 270 = 590
Hence nominal GDP increases between year 1 and year 2
Real GDP year 1 = Price (Good 1) (Year 1) x Quantity (Good 1) (Year 1) + Price (Good 2) (Year 1) x Quantity (Good 2) (Year 1) = 8*30 + 11*20 = 240 + 220 = 460
Real GDP year 2 = Price (Good 1) (Year 1) x Quantity (Good 1) (Year 2) + Price (Good 2) (Year 1) x Quantity (Good 2) (Year 2) = 8*20 + 11*18 = 160 + 198 = 358
Real GDP is redused between 1st year and 2nd year.
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