Question

1 a. US GDP was 14,419 billion in 2009 and 14,964 billion in 2010. What was the percentage increase in GDP over this period? Show your work.

1 b. Inflation between 2009 and 2010 was 1.2 percent. What was the approximate percentage growth in real GDP?

2. According to the Bureau of Economic Analysis in the U.S. Census Bureau, what was US GDP in 2017, in billions of current dollars?

3. Approximately when did the most recent U.S. recession occur?

Answer 1

1 a. US GDP was 14,419 billion in 2009 and 14,964 billion in 2010. Find the percentage increase in GDP

= (14,964 billion - 14,419 billion)*100/14,419 billion

= 3.78%

1 b. Inflation between 2009 and 2010 was 1.2 percent. We know that rate of growth of Nominal GDP - rate of inflation = rate of growth of real GDP

Hence rate of growth of real GDP is given by

= 3.78% - 1.2%

= 2.58%

2. According to the Bureau of Economic Analysis in the U.S. Census Bureau, US GDP in 2017, in billions of current dollars us $19,738.9 billion

3. Latest recession was one of the longest that started in 2007-08 and was mitigated by the end of 2015