Answer the following questions: Use these data to answer the associated questions. Be sure to answer the questions as completely as you can. If calculations are requested, show your work!
Action Items 2000 2001 2002 2003 2004
Nominal GDP 9817 10128 10469.6 10971.2 11734.3
Real GDP 9817 10320.6 10755.7
GDP Deflator 100 102.4 104.2
Growth rate of nominal GDP 3.2% 4.8%
Growth rate of real GDP 1.6% 4.2%
CPI 172.2 177.1 179.9 184 188.9
Inflation rate using GDP deflator 2.4% 2.0%
Inflation rate using CPI 1.58% 2.7%
1. How is the real GDP calculated from the given data? Fill in the missing values of real GDP in the table.
2. How is the growth rate of GDP calculated from the given data? Fill in the missing values of the growth rate of nominal and real GDP in the table.
3. What's the difference between nominal GDP and real GDP? Which one is better for measuring economic well-being?
4. How is the GDP Deflator calculated from the data given? Fill in the missing values of GDP deflator in the table.
5. Explain how to calculate the annual inflation rate.
6. What's the key difference between these two measures of inflation?
Answer the following questions: Use these data to answer the associated questions. Be sure to answer the questions as completely as you can. If calculations are requested, show your work!
Action Items 2000 2001 2002 2003 2004
Nominal GDP 9817 10128 10469.6 10971.2 11734.3
Real GDP 9817 10320.6 10755.7
GDP Deflator 100 102.4 104.2
Growth rate of nominal GDP 3.2% 4.8%
Growth rate of real GDP 1.6% 4.2%
CPI 172.2 177.1 179.9 184 188.9
Inflation rate using GDP deflator 2.4% 2.0%
Inflation rate using CPI 1.58% 2.7%
1. How is the real GDP calculated from the given data? Fill in the missing values of real GDP in the table.
2. How is the growth rate of GDP calculated from the given data? Fill in the missing values of the growth rate of nominal and real GDP in the table.
3. What's the difference between nominal GDP and real GDP? Which one is better for measuring economic well-being?
4. How is the GDP Deflator calculated from the data given? Fill in the missing values of GDP deflator in the table.
5. Explain how to calculate the annual inflation rate.
6. What's the key difference between these two measures of inflation?
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Related questions
Calculate the missing data.
Calculate missing data from the table.
Income/Expenditure Flows | Amount (in billions) |
Consumption expenditure | $7 |
Government expenditure | $5 |
Depreciation | $3 |
Net taxes | $2 |
Investment | $4 |
Net exports | $1 |
Expenditures | |
Income | |
GDP |
Calculate the following.
Using the data from a partial set of national income and expenditure data, address the following:
Calculate gross domestic product (GDP) using the expenditure approach.
Determine net domestic product, gross national product (GNP), and statistical discrepancy.
Item | Amount in 2010 (in billions) |
Government expenditure (G) = | $8 |
Consumption expenditure (C) = | $20 |
Investment (I) = | $5 |
Net exports (NX) = | $1.5 |
GDP (expenditure approach)= | |
Total wages = | $21 |
Net operating surplus = | $11 |
Net domestic product = | |
Indirect taxes minus subsidies = | $3.5 |
Capital consumption = | $2 |
GDP (income approach)= | |
Statistical discrepancy = | |
Net factor income from abroad = | $5.5 |
GNP = |
Consider the tables.
Given production and price data below, address the following:
Calculate an economy's nominal GDP and real GDP.
In 2000:
Item | Quantity (millions) | Price ($/unit) | Expenditure (millions of $) |
Socks | 15 | 5 | 75 |
SIM cards | 20 | 2 | 40 |
Defense Budget | 9 | 5 | 45 |
Real/Nominal GDP = 160
In 2003:
Item | Quantity (millions) | Price ($/unit) | Expenditure (millions of $) |
Socks | 15 | 5 | 75 |
SIM cards | 20 | 5 | 100 |
Defense Budget | 20 | 10 | 200 |
Nominal GDP =
2003 Quantities valued at 2000 prices:
Item | Quantity (millions) | Price ($/unit) | Expenditure (millions of $) |
Socks | |||
SIM cards | |||
Defense Budget |
Real GDP =
Answer the following questions.
How do you measure GDP?
How do you measure real and nominal GDP?
How do you determine Consumer Price Index and what are its limitations?
Which of the following expenditures will be included in GDP which will be excluded from the calculation? Explain your answers.
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