Suppose that the average annual growth rate of nominal GDP over a period is 6.8% and the average annual inflation rate over the same period is 3.7%. What is the growth rate of real GDP?
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Suppose that the average annual growth rate of nominal
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- In this section we looked at the growth rate formula for measuring the average annual growth rate of a variable, such as the CPI, the GDP deflator, or real GDP. It can be used for any two years, which may be years apart. For example, in the worksheet you computed the average annual rate of inflation from 1920 to 2020. If you use the growth rate formula for a variable one year apart, do you get the same value as you do with the percentage change formula? Hint: Say that real GDP grew from $20.0 trillion one year to $20.4 trillion the next year. Do both the percentage change and the growth rate formulas give you the same answer? yes noIf the GDP deflator rose from 106.2 in 1998 to 112.3 in 2000, what was the rate of inflation?Consider the data for a known country for the consumer price index (CPI), by components:(base year 2015 = 100) a) Interpret the value of the CPI index in December 2018. b) Calculate the year-on-year inflation rate corresponding to the CPI, in December 2018. c) Suppose the GDP Deflator in 2020 is predicted to be 1.09. What can be interpreted?
- Bureau of Economic Analysis data show that with base year 2005 = 100, the GDP price index was 109.7 in the second quarter of 2009. In that same quarter, the PCEPI was 108.8. Given the further information that the prices of capital goods (investment) and foreign traded goods (exports and imports) increased at a slower pace than the prices of consumption goods and services, how would you explain the difference in the GDP price index and PCEPI measures of inflation? Choose the correct statement. A. The prices of government goods and services increased at the same pace as the prices of consumption goods. B. The prices of consumption goods increased at a faster pace than the prices of government goods. C. The prices of exports increased at the same pace as the prices of imports. D. The prices of government goods and services increased at a faster pace than the prices of consumption goods. E. The prices of capital goods and foreign traded…suppose an increase in productivity increases nominal GDP by 6% and inflations is 3% what is the real GDP growth rate?If a country experienced nominal GDP growth of 8% over the two period when it faces inflation of 5%, what is the real GDP growth of this country? (provide exact answer in two decimal points) Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- A country produces only sugar and wheat in the quantities and prices listed below. The GDP deflator is given by Nominal GDP/Real GDP *100. If 2018 is the base year, i. What is the GDP deflator for years 2019 and 2020? Show your workings ii. What is the inflation rate year 2019-2020? Show your workings Year Price of sugar Quantity of sugar Price of wheat Quantity of wheat 2018 $2.00 200 $10 40 2019 $2.30 250 $14 50 2020 $2.75 280 $18 80Asap1) If nominal GDP is $7636.0 billion and the GDP deflator is 130.2, then what is real GDP? 2) If the Consumer Price Index rose from 166.3 in 1985 to 380.1 in 2010, what would be the inflation rate over this period?
- While the CPI always has a base year and the base year can be changed, does a change in the base year change the inflation rate calculated from the CPI data (e.g., the U.S. inflation rate for 2021 was 6.8% and does this rate depend on the base year of CPl or will a change in the CPI base year change the inflation rate of 2021)?Suppose in the 1982 base year a typical market basket purchased by an urban family cost $250. In 1996, the same market basket cost $1,000. The same market basket also cost $950 in 1995. A) What is the consumer price index (CPI) for 1996? B) What is the consumer price index (CPI) for 1995? C) What was the annual rate of inflation for 1996? d) Answer the Question in detail on the image providedsuppose for a country the nominal GDP growth rate is 6 percent,CPI increassed from 100 to 104,and the population growth rate is 1.2 %.what is the real GDP per capita growth rate a- 2 percent b 0.8 percent c-11.2 percent d-3.2 percent
