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Homework answers / question archive / Suppose the value of Indian nominal GDP is 125 trillion rupees
Suppose the value of Indian nominal GDP is 125 trillion rupees. 65 Indian rupees is worth one US dollar. In addition, the price level in the US, divided by the price level in India is 3.9. The value of Indian GDP in U.S. dollars, adjusted for price differences is:
(a) $7.5 trillion (b) $0.9 trillion (c) $32.1 trillion (d) $2083 trillion (e) $0.4 trillion
Answer
C )
Explanation
If the S is hot chocolate sales and T is temperature, and it is related with
S = 130 - 2T
Then the change in sales depend on temperature inversely and the magnitude is
dS/dT = -2
This is the slope of this equation and can be interpreted as the change of sales of hot chocolate with respect to temperature .
Therefore if temperature decrease by 5 units then sales of chocolate increase by 10 units as
dS = -2*dT
dS = -2*dT = -2*-5 = 10
So, the correct option is C " increase by 10 units if temperature falls by 5 units".
