Question

Check out the nominal GDP levels for U.S.A. in 2016 and 2009 from the website of U.S. Bureau of Economic Analysis. The 2016 GDP deflator relative to the base year 2009 is 111.4 (P2009=100).

Given that the U.S. population in 2016 is roughly 323.1 million, calculate the nominal GDP per capita in 2016.

Calculate real GDP for 2016 in 2009 dollars.

Calculate the compound annual growth rate of real GDP from 2009 to 2016.

Answer 1

The nominal GDP level for U.S.A in 2016 is 18,624,475 million and according to the information given above, the U.S. population in 2016 is 323.1 million. To calculate the nominal GDP per capita in 2016, we use the following formula:

Nominal GDP per capita = Nominal GDP/ Population = 18624475/323.1 = $57,643.06 million

To calculate real GDP per capita if you only know nominal GDP and the GDP deflator, we can use the following formula:

Real GDP per capita 2016 = (Nominal GDP / GDP Deflator ) / Population = (18624475/ 111.4) / 323.1 = $517000,000

CAGR of real GDP = (Real GDP in 2016 / Real GDP in 2009)^{(1/Number of years)}- 1
= (167185.6 / 14400)^(1/7) - 1