Question

Suppose that nominal GDP was $9250000.00 in 2005 in Orange County California. In 2015, nominal GDP was $11000000.00 in Orange County California. The price level rose 2.00% between 2005 and 2015, and population growth was 3.50%. Calculate the following figures for Orange County California between 2005 and 2015. Give all answers to two decimals.

a. Nominal GDP growth was %.

Part 2   (1 point)

b. Economic growth was %.

Part 3   (1 point)

c. Inflation was %.

Part 4   (1 point)

d. Real GDP growth was %.

Part 5   (1 point)

e. Per capita GDP growth was %.

Part 6   (1 point)

f. Real per capita GDP growth was %.

Answer 1

A. Nominal GDP growth rate= ((11000000-9250000)÷9250000)*100

=18.92%

B. Economic growth rate= Nominal GDP growth rate- Inflation- population growth rate

= 18.92 %-2%-3.5%= 13.42%

C. Inflation= rise in price level= 2%

D. Real GDP growth rate= Nominal GDP growth rate- Inflation= 18.92%-2%= 16.92%

E. Per capita GDP growth rate= Nominal GDP growth rate-population rate

= 18.92%- 3.5%=15.42 %

F. Real per capita GDP growth rate= Economic growth rate= 13.42%

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