assume the following: Karachi is an autonomous city. The only good/service produced at Karachi is Graduate education. year Karachi Grad std Price (tuition) Nominal GDP Real GDP (2015) Real GDP (2018) 2010 600 20000       2011 750 22000       2012 900 24000       2013 1100 25000       2014 1050 26000       2015 1300 29000

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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, assume the following:

  1. Karachi is an autonomous city.
  2. The only good/service produced at Karachi is Graduate education.

year

Karachi Grad std

Price (tuition)

Nominal GDP

Real GDP (2015)

Real GDP (2018)

2010

600

20000

 

 

 

2011

750

22000

 

 

 

2012

900

24000

 

 

 

2013

1100

25000

 

 

 

2014

1050

26000

 

 

 

2015

1300

29000

 

 

 

2016

1500

33000

 

 

 

2017

1600

36000

 

 

 

2018

1800

39000

 

 

 

2019

1750

43000

 

 

 

2020

1700

48000

 

 

 

 

  1. Find the growth rate of nominal GDP for 2014, 2015 and 2016.
  2. Find the growth rate of real GDP (using 2017) for 2012, 2013 and 2014.
  3. Why are your answers in 2 and 3 different/same?
  4. Compute inflation using GDP deflator (using 2017) for 2012, 2013 and 2014.
  5. Beside GDP deflator what other price indices are used in measuring inflation?

7. Which one is the best? Why?

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