Question

1. If Jamaica maintains its growth rate, what will the GDP be in 10 years?

  

1. The following table contains economic data on Jamaica:

	Nominal GDP (in billions USD)	GDP deflator	Real GDP (in billions USD)
2015	$14.19	96.53
2016		100	$14.06
2017	$15.57		$14.77

1. Fill in the missing values?
2. What is the GDP growth rate from 2015 to 2017?
3. What is the inflation rate from 2017 to 2016?
4. If Jamaica maintains its growth rate, what will the GDP be in 10 years?  
5. There are roughly 2.9million people living in Jamaica. What is the GDP per capita?
6. How long will it take for Jamaica to double its GDP?

Answer 1

a. GDP deflator = Nominal GDP/Real GDP

	Nominal GDP (in billions USD)	GDP deflator	Real GDP (in billions USD)
2015	14.19	96.53	14.70
2016	14.06	100.00	14.06
2017	15.57	105.42	14.77

b. GDP growth rate = ((14.77-14.7)/14.7)*100 = 0.4761

c. Inflation = ((105.42-100)/100)*100 = 5.42 percent

d. GDP inn 10 years = 14.77*(1+(0.4761/100))^10 = 15.49 percent

e. GDP per capita = (1000000000*14.77)/2900000 = $5093.10 US

f. By using rule of 70, the no of years to double the GDP =70/(0.4761) = 147.03 years