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Date Posted: 14:32:22 07/02/02 Tue
Author: Gordon Geico
Subject: Re: real and nominal growth
In reply to: pris 's message, "real and nominal growth" on 14:26:41 07/02/02 Tue

The way DaDalt showed it in class is a lot easier. THe nominal growth rate is the pct. change in sales dollars. THe real growth rate is the pct. change in units sold. to convert from dollars to units, just divide by the price (or the price index). A lto easier than the book's way...


>I don't understand this equation 1+nominal/1+i=1+r. I
>would appreciate it if someone could work out a sample
>problem for me so I understood what all the components
>of this equation are. Thanks

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