Question

Year |
Nominal GDP |
Economic Growth |
Workers |
GDP Deflator |
Capital |
Population |
CPI |
M1 |
Inflation (with GDP Deflator) |

2019 | $22,000,000 | 2.10% | 100 | 110 | 20,000,000 | 200 | 300 | $4,000,000 | 1.10% |

2069 | $384,000,000 | 2.80% | 150 | 320 | 60,000,000 | 300 | 1200 | $40,000,000 | 2.90% |

As you might expect from the increase in nominal GDP compared to the increased in the GDP deflator, real GDP grew over these projected 50 years. Also, population growth was modest given the span of 50 years. Will all of this in mind, by how much did real GDP per person grew on average over these 50 years? Don't forget that this will be an annual growth rate.

Please show your work and explain you reasoning.

Answer #1

**ANSWER:**

**Real gdp in 2019 = (Nominal gdp in 2019 / GDP
deflator) * 100**

**Real gdp in 2019 = (22,000,000 / 200) *
100**

**Real gdp in 2019 = 110,000 * 100**

**Real gdp in 2019 = 11,000,000**

**Real gdp per person in 2019 = Real gdp in 2019 /
population = 11,000,000 / 200 = 55,000**

**Real gdp in 2069 = (Nominal gdp in 2069 / GDP
deflator) * 100**

**Real gdp in 2069 = (384,000,000 / 300) *
100**

**Real gdp in 2069 = 1,280,000 * 100**

**Real gdp in 2069 = 128,000,000**

**Real gdp per person in 2069 = Real gdp in 2069 /
population = 128,000,000 / 300 = 426,666.67**

**Annual growth rate = (Real gdp per person in 2069 /
Real gdp per person in 2019) ^ 1 / n - 1**

**Annual growth rate = (426,666.67 / 55,000) ^ 1 / 50
- 1**

**Annual growth rate = (8.5333) ^ 1 / 50 -
1**

**Annual growth rate = 1.04381 - 1**

**Annual growth rate = 0.04381 or
4.381%**

**so the annual growth rate of real gdp per person
from 2019 to 2069 is 4.381%**

Given information:
Year
Nominal GDP (Billions)
Gdp Deflator
Population
CPI
Medium Family Income
Question: Calculate and state the following for the years shown for
the XYZ economy: the rates of growth (% per year) of :nominal
GDP; real GDP; real GDP per capita, Real
Medium family income (Provide the formula to calculate the above in
detail)

The following table
gives information on nominal GDP (in billions of $) and the GDP
deflator (base year = 2009):
Year
NGDP
Deflator
RGDP
1950
2000
2015
300
10,252
18,219
13.064
78.069
104.757
a. Fill in the values for real
GDP.
b.
Using the growth formula that we identified in class, calculate the
average annual rates of nominal and real GDP growth from 1950 to
2000 (n = 50 years). Which do you think gives a better indicator of
true...

1. Country A with a civilian non-institutionalized
population of 237 mil (all over age 16), has 156 mil employed and
47 mil unemployed persons, of the unemployed 5 mil is frictional
and 8 mil structural.
a) What is the size of the labor force? …………………………………………
b) What is the actual unemployment rate? …………………………………….
c) What is the Cyclical unemployment?
.................................................
d) What is the Natural Rate of Unemployment (NRU)? ………………………
e) Is this economy in a recession or a boom?...

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