(Transcript of audio with descriptions. Transcript includes narrator headings and description headings of the visual content)
(Speaker)
This problem is going to walk you through the calculations of nominal and real GDP.
(Description)
The economy of Britannica produces three goods: computers, Blu-rays, and pizzas. The accompanying table shows the prices and output of the three goods for the years 2012, 2013, and 2014. Table consists of 7 columns and 3 rows. Columns are as follows: 1 - year; 2 and 3 - price and quantity for computers, respectively; 4 and 5 - price and quantity for Blu-rays, respectively; 6 and 7 - price and quantity for pizzas. In 2012, the price of computers was 900 dollars, and the quantity was 10; the price of Blu-rays was 10 dollars and the quantity was 100; the price of pizzas was 15 dollars and the quantity was 2. In 2013, the price of computers was 1000 dollars, and the quantity was 10.5; the price of Blu-rays was 12 dollars and the quantity was 105; the price of pizzas was 16 dollars and the quantity was 2. In 2014, the price of computers was 1050 dollars, and the quantity was 12; the price of Blu-rays was 14 dollars and the quantity was 110; the price of pizzas was 17 dollars and the quantity was 3. What is the percentage change in production of each of the goods from 2012 to 2013 and from 2013 to 2014?
(Speaker)
In the first part, we are going to calculate the percent change in production from 2012 through 2014. In the first part, you were asked to calculate the percent change in the production of computers from 2012 to 2013. In the table, Britannica produced 10 computers in 2012 and 10.5 computers in 2013.
(Description)
10 and 10.5 computers in years 2012 and 2013 respectively are highlighted in the table.
(Speaker)
The percent change is found by taking the difference in production 10.5 minus 10, and dividing by the level of production in 2012 or 10 computers.
(Description)
The percent change in the production of computers from 2012 to 2013 is presented: fraction, 10.5 minus 10 in the numerator, 10 in the denominator, times 100, equals 5.0 percent.
(Speaker)
You will find production increased by 0.05 or 5 percent. Next, we want to calculate the percent change in the production of computers from 2013 to 2014. Using the table, you can find production levels in 2013 and 2014 are 10.5 and 12 computers, respectively.
(Description)
10.5 and 12 computers in years 2013 and 2014, respectively, are highlighted in the table.
(Speaker)
Like you did from 2012 to 2013 the percent change is found by taking the difference in production, 12 minus 10.5, and dividing by the level of production, in 2013 or 10.5 computers.
(Description)
The percent change in the production of computers from 2013 to 2014 is presented: fraction, 12 minus 10.5 in the numerator, 10.5 in the denominator, times 100, equals 14.3 percent.
(Speaker)
You will find production increased by 14.3 percent. We are going to do the same process for Blu-rays. In 2012 and 2013 Britannica produced 100 and 105 Blu-rays, respectively.
(Description)
100 and 105 Blu-rays in years 2012 and 2013, respectively, are highlighted in the table.
The percent change in the production of Blu-rays from 2012 to 2013 is presented: fraction, 105 minus 100 in the numerator, 100 in the denominator, times 100, equals 5.0 percent.
(Speaker)
This is a 5 percent increase from 2012 to 2013. Continuing with 2013 in 2014 Britannica produced 105 and 110 Blu-rays, respectively.
(Description)
105 and 110 Blu-rays in years 2013 and 2014 respectively are highlighted in the table.
The percent change in the production of Blu-rays from 2013 to 2014 is presented: fraction, 110 minus 105 in the numerator, 105 in the denominator, times 100, equals 4.8 percent.
(Speaker)
This is a 4.8 percent increase from 2013 to 2014. The final step is to calculate the percent change in pizza production. Britannica produced two pizzas in both 2012 and 2013.
(Description)
2 and 2 pizzas in years 2012 and 2013, respectively, are highlighted in the table.
The percent change in the production of pizzas from 2012 to 2013 is presented: fraction, 2 minus 2 in the numerator, 2 in the denominator, times 100, equals 0 percent.
(Speaker)
Since production didn't change, the percent change in production is 0 percent. Continuing with 2013 and 2014, Britannica produced two and three pizzas, respectively.
(Description)
2 and 3 pizzas in years 2013 and 2014, respectively, are highlighted in the table.
The percent change in the production of pizzas from 2013 to 2014 is presented: fraction, 3 minus 2 in the numerator, 2 in the denominator, times 100, equals 150 percent.
(Speaker)
This is a 50 percent increase from 2013 to 2014.