Question

The following table shows nominal GDP and an appropriate price index for a group of selected...

The following table shows nominal GDP and an appropriate price index for a group of selected years. Compute real GDP. Indicate in each calculation whether you are inflating or deflating the nominal GDP data.

Year Nominal GDP, Billions Price Index (2005 = 100) Real GDP, Billions Effect on Nominal GDP
1978 2,293.80 40.40
1988 5,100.40 66.98
1998 8,793.50 85.51
2008 14,441.40 108.48
2018 20,501.00 128.59

Homework Answers

Answer #1
Year Nominal GDP (billions) Price index (2005=100) Real GDP (Billions) Effect on Nominal GDP
1978 2293.8 40.4 5677.7 delating
1988 5100.4 66.98 7614.8 deflating
1998 8793.5 85.51 10283.6 deflating
2008 14,441.40 108.48 13312.5 inflating
2018 20,501 128.59 15942.9 inflating

Real GDP = (Nominal GDP / Price index) *100

Nominal GDP is deflating if Nominal GDP is less than Real GDP.

Nominal GDP is inflating if Nominal GDP is greater than Real GDP.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The accompanying table shows data on nominal GDP (in billions of dollars), real GDP (in billions...
The accompanying table shows data on nominal GDP (in billions of dollars), real GDP (in billions of 2005 dollars), and population (in thousands) of the United States in 1960, 1970, 1980, 1990, 2000, and 2010. The U.S. price level rose consistently over the period 1960–2010. Year Nominal GDP (billions of dollars) Real GDP (billions of 2005 dollars) Population (thousands) 1960 $526.4 $2,828.5 180,760 1970 1,038.5 4,266.3 205,089 1980 2,788.1 5,834.0 227,726 1990 5,800.5 8,027.1 250,181 2000 9,951.5 11,216.4 282,418 2010...
The following table gives nominal GDP and the price index for two years. Find real GDP...
The following table gives nominal GDP and the price index for two years. Find real GDP in each year, and fill in the table. (Round your answers to two decimal places.) Year Nominal GDP Price index Real GDP 2010 9,900 105 2011 10,692 107
The following table shows some data for an economy that produces only two goods: milk and...
The following table shows some data for an economy that produces only two goods: milk and honey. Year Milk Honey Price Quantity Price Quantity (Dollars) (Quarts) (Dollars) (Quarts) 2016 1 200 2 100 2017 1 400 2 200 2018 2 400 4 200 The following table shows nominal GDP, real GDP, and the GDP deflator for each year listed. Year Nominal GDP Real GDP GDP Deflator (Dollars) (Dollars) 2016 400 400 100 2017 800 800 100 2018 1,600 800 200...
Refer to the following table, and answer the questions that follow: Year Nominal GDP Real GDP...
Refer to the following table, and answer the questions that follow: Year Nominal GDP Real GDP GDP deflator 2012 $210,000    ?? 100.0 2013    ?? $215,000 110.0 2014 $260,000 $220,000    ?? (a) Compute the nominal GDP in 2013. (b) Compute the price level in 2014. (c) Calculate the inflation rate between 2012 and 2013.
5. Problems and Applications Q5 1.GDP Computations 2.Percentage Changes STEP: 1 of 2 The following table...
5. Problems and Applications Q5 1.GDP Computations 2.Percentage Changes STEP: 1 of 2 The following table shows some data for an economy that produces only two goods: milk and honey. Year Milk Honey Price Quantity Price Quantity (Dollars) (Quarts) (Dollars) (Quarts) 2016 1 200 2 100 2017 1 400 2 200 2018 2 400 4 200 Using 2016 as the base year, compute nominal GDP, real GDP, and the GDP deflator for each year. Year Nominal GDP Real GDP GDP...
The following table shows some information on a hypothetical economy. The table lists real GDP, consumption...
The following table shows some information on a hypothetical economy. The table lists real GDP, consumption (C), investment (I), government spending (G), net exports (X – M), and aggregate expenditures (AE). In this problem, assume that investment, government spending, and net exports are independent of the economy's real GDP level. Real GDP C I G X – M AE Unplanned Inventory Investment Direction of Real GDP and Employment $400 $300 $50 $100 $0 -$50    $500 $50 $100 $0 $500...
Q.2 Refer to the following table, and answer the questions that follow: Year Nominal GDP Real...
Q.2 Refer to the following table, and answer the questions that follow: Year Nominal GDP Real GDP GDP deflator 2012 $210,000    ?? 100.0 2013    ?? $215,000 110.0 2014 $260,000 $220,000    ?? (a) Compute the nominal GDP in 2013. (b) Compute the price level in 2014. (c) Calculate the inflation rate between 2012 and 2013.
Use the table below to answer the following questions Price level Real GDP supplied (short run)...
Use the table below to answer the following questions Price level Real GDP supplied (short run) Real GDP demanded 100 550 600 110 575 575 120 600 550 130 625 525 Calculate short-run equilibrium and the price level If potential GDP equals 625, what is the gap called and what is the amount of the gap? If potential GDP equals 550, what is the gap called and what is the amount of the gap? Use the table below to answer...
The hypothetical information in the following table shows what the values for real GDP and the...
The hypothetical information in the following table shows what the values for real GDP and the price level will be in 2015 if the government does not use fiscal policy : Year Potential GDP Real GDP Price Level 2014 $1.50 trillion $1.50 trillion 110.0 2015 $1.54 trillion $1.50 trillion 111.5 If Parliament wants to keep real GDP at its potential level in 2015, should it use an expansionary policy or a contractionary policy? Explain whether the government should be increasing...
The following table shows price and quantity data of Country BF which produces only two products:...
The following table shows price and quantity data of Country BF which produces only two products: food and beverages. Beverages products Food products Price $ Quantity (tons) Price $ Quantity (tons) 2017 2 2 10 10 2018 3 3 11 20 2019 4 4 13 25 Calculate the following: a.     the nominal GDP for each year (10 points) b.     the real GDP for each year using 2017 as the base year (10 points) c.      the GDP deflator for each year (10 points)   ...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT