Question 1 Problem 1. The following table shows Nominal GDP for two consecutive years together with the GDP Deflator Index Calculate the following: a) Real GDP for each year. b) The inflation rate over the 1-year period from the first year to the second. c) The growth rate of Nominal GDP. d) The growth rate of Real GDP. Does the data seem to indicate a recession or a growing economy? Explain briefly e) Find the difference between the answer to c) and the answer to b). Year 2029 2030 Nominal GDP ($ billion). 5000 5350 GDP Deflator 240 252 Real GDP
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- What is the relationship of the GDP deflator to real GDP? To make comparisons across time or across borders, one must use the notion of a GDP deflator to convert nominal GDP into real GDP for comparisons. Nominal variables are in current dollars and have price level changes such as inflation and deflation included in them. Real variables are in constant dollars due to the factoring out of price level changes using a base year and a deflator. What is the current nominal GDP for the US economy? What is the current real GDP for the US economy?The following table shows the outputs and prices of three products produced by an economy in 2018, 2019 and 2020. (i) Measure the nominal GDP, the real GDP and the GDP deflator in 2019 and 2020, taking 2018 as the base year.(ii) Using the GDP deflator, measure the inflation rate in the economy between 2018 and 2019, and also between 2019 and 2020. (iii) Assume all household consumption items are locally produced as shown in the table in Question (a). A typical household in the economy consumes 5 units of rice, 4 units of shirt and 2 units of shoes in 2018. Using 2018 as the base year, measure the CPI for 2019 and 2020 and the inflation rate between 2018 and 2019, and also between 2019 and 2020. Explain why the inflation rate is different from those computed from (a)(ii).Gross domestic product (GDP) is a measure of the market value of final goods and services produced within the borders of a country during a specific time period, usually a year. What is the GDP deflator? How does the GDP deflator relate to real GDP? Review GDP and nominal versus real. Real adjusts for inflation, so how do we arrive at the real GDP number from nominal GDP? Review the GDP deflator formula, where GDP deflator = (Nominal GDP/Real GDP) X 100.
- The following table contains nominal and real GDP data, in billions of dollars, from the U.S. Bureau of Economic Analysis for 2013 and 2014. The data is listed per quarter, and the real GDP data was calculated using 2009 as the base year. Fill in the columns for the GDP deflator and for the percent increase in price level. (Round your responses to two decimal places!) Quarter Nominal GDP Real GDP GDP Deflator Percent Increase in Price Level (%) 2013 Q1 16,502.40 15,538.40 106.20 ---- 2013 Q2 16,619.20 15,606.60 ? ? 2013 Q3 16,872.30 15,779.90 ? ? 2013 Q4 17,078.30 15,916.20 ? ? 2014 Q1 17,044.00 15,831.70 ? ? 2014 Q2 17,328.20 16,010.40 ? ? 2014 Q3 17,599.80 16,205.60 ? ? 2014 Q4 17,703.70 16,294.70 ? ? Please explain how to solve the empty columns thank you!Suppose you are reading a magazine showing a figure that plots the U.S. GDP from 1900 to 2012 in "2005 chained dollars" . It means: a) The GDP is calculated using 2005 prices; b) The GDP is calculated applying the variable-weighted price-index approach with 2005 as the base 9. year; c) The GDP is price-adjusted based on the chain-weighted price-index approach with 2005 as the base year. d) None of the above.a) Calculate GDP Deflator of 2009. b) Calculate the Growth rate of real GDP of 2009. c) What can you conclude from your answer to part a. d) What can you conclude from your answer to part b. please show all calculation .Answer must be correct. Answer follow image
- Why the use real GDP is preferred by economists over nominal GDP to gauge economic well-being? Consider the following data on the Pakistan economy: Nominal GDP GDP Deflator Year (in billions of rupees) (base year 2012) 2018 21,501 111.4 1998 9,163 76.3 a) What was the growth rate of nominal GDP between 1998 and 2018? (Hint: The growth rate of a variable X over an N-year period is calculated as [(Xfinal/Xinitial)1/N – 1] x 100). b) What was the growth rate of the GDP deflator between 1998 and 2018? What was real GDP in 1998 measured in 2012 prices? a) What was real GDP in 2018 measured in 2012 prices? b) What was the growth rate of real GDP between 1998 and 2018? c) Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP? Explain.According to the Bureau of Economic Analysis, the GDP Deflator for the 3rd Quarter 2021 is +5.7%. The U.S. Bureau of Labor Statistics reported the Consumer Price Index (CPI) as rising 5.4 percent over the last 12 months, not seasonally adjusted. Given this information: 1) Interpret these data and summarize its meaning. 2) What are these data measuring? 3) If you were a business economist, which would you use and why?Using the data in the table, compare the percentage rates of change in nominal GDP, real GDP, and the GDP Price Index over these three time periods. Note changes in the magnitudes of each. Are there periods when prices grew more rapidly? Are there periods where real output grew more rapidly? Note how these affect the percentage change in nominal GDP. Make specific observations based on the information in the table.
- Suppose that an economy produces two goods: laptops and books. The quantity produced and the prices of these items for 2019 and 2020 are shown in the table below: Year Quantities produced Price ($) Laptops = 60 = 220 Laptops ? Books 2019 Books = 1200 Laptops = 100 Books = ? Laptops = 200 2020 Books 8 = Instructions: Round your answer to two decimal places. a. Let's assume that the base year was 2019, so that real GDP in 2019 equals nominal GDP in 2019. If the real GDP was $18,000 in 2019, the price of books must have been $ Instructions: Round your answer to the nearest whole number. b. Using your answer from part (a), if the growth rate in nominal GDP was 15 percent, have been produced. books must Instructions: Round your answer to one decimal place. c. Using your answers from parts (a) and (b), the growth rate in real GDP between 2019 and 2020 was percent.The following table contains nominal and real GDP data, in billions of dollars, from the U.S. Bureau of Economic Analysis for 2016 and 2018. The data is listed per quarter, and the real GDP data was calculated using 2009 as the base year. Fill in the columns for the GDP deflator, for the percent increase in the price level, and economic growth rate. (Note: Rounding to three decimal points for GDP deflator and to the nearest tenth for price increase and economic growth rate) Quarter 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 Nominal GDP 18,325.2 18.538.0 18,729.1 18,905.5 19.057.7 19,250.6 19,500.6 19,754.1 20,098.8 percent Increase in Price Level? economic Growth rate? Real GDP 16,571.6 16.663.5 16,778.1 16,851.4 16.903.2 17,031.1 17,163.9 17,286.5 17,457.6 What is the value of the following indicators in the 2017 Q2 for: GDP deflator? percent Increase in Price Level? economic Growth rate? GDP Deflator What is the value of the following indicators in the…The following table contains nominal and real GDP data, in billions of dollars, from the U.S. Bureau of Economic Analysis for 2016 and 2018. The data is listed per quarter, and the real GDP data was calculated using 2009 as the base year. Fill in the columns for the GDP deflator, for the percent increase in the price level, and economic growth rate. (Note: Rounding to three decimal points for GDP deflator and to the nearest tenth for price increase and economic growth rate) Quarter 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 Nominal GDP 18,325.2 18,538.0 18,729.1 18,905.5 19,057.7 19,250.6 19,500.6 19,754.1 20,098.8 Real GDP 16,571.6 16,663.5 16,778.1 16,851.4 16,903.2 17,031.1 17,163.9 17,286.5 17.457.6 GDP Deflator What is the value of the following indicators in the 2017 Q2 for: GDP deflator? percent Increase in Price Level? economic Growth rate? Percent Increase in Price Level (%) (rounding to three decimal points) What is the value of the following…