Question

In 2010, the gdp price index was $101.2 and real gdp was 14.8 trillion.

In 2011, nominal gdp was $15.5 trillion and real gdp was $15.0 trillion.

Calculate the increase in nominal gdp and the increase in the gdp price index in 2011.

Answer 1

GDP price index = Nominal GDP x 100 Real GDP

Nominal GDP in 2010 = ( Real GDP x GDP price index ) 100

Nominal GDP in 2010 = ( $ 14.8 trillion x $ 101.20) 100

Nominal GDP in 2010 = $ 14.98 trillion

Increase in nominal GDP = ( $ 15.5 trillion - $ 14.98 trillion ) $ 14.98 trillion

Increase in nominal GDP = 3.47%

GDP price index in 2011 = ( Nominal GDP x 100 Real GDP )

GDP price index in 2011 = ( $ 15.5 trillion x 100 $ 15 million)

GDP price index in 2011 = $ 103.33

Increase in the GDP price index in 2011 = ( $ 103.33 - $ 101.2 ) $ 101.2

Increase in the GDP price index in 2011 = 2.10 %

answered by: anonymous