Problem 3. (25 points) Below is data on two countries: Country A $21mil $25mil $10mil $15mil 100 Nominal GDP in 2015 Nominal GDP in 2016. Real GDP in 2015 Real GDP in 2016 Population in 2015 Country B $360mil $370mil $340mil $345mil 1000 Answer the questions below providing appropriate computations (i.e. computing and comparing GDP per capita, growth rates and inflation rates). 1. Which country has higher GDP per capita in 2015? What does this say about living standards? 2. Which country's economy grew more in 2016? 3. Which country has higher inflation in 2016?

Problem 3. (25 points) Below is data on two countries: Country A $21mil $25mil $10mil $15mil 100 Nominal GDP in 2015 Nominal GDP in 2016. Real GDP in 2015 Real GDP in 2016 Population in 2015 Country B $360mil $370mil $340mil $345mil 1000 Answer the questions below providing appropriate computations (i.e. computing and comparing GDP per capita, growth rates and inflation rates). 1. Which country has higher GDP per capita in 2015? What does this say about living standards? 2. Which country's economy grew more in 2016? 3. Which country has higher inflation in 2016?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Problem 3. (25 points) Below is data on two countries:
Country A
$21mil
$25mil
$10mil
$15mil
100
Nominal GDP in 2015.
Nominal GDP in 2016
Real GDP in 2015
Real GDP in 2016
Population in 2015
Country B
$360mil
$370mil
$340mil
$345mil
1000
Answer the questions below providing appropriate computations (i.e. computing and comparing GDP
per capita, growth rates and inflation rates).
1. Which country has higher GDP per capita in 2015? What does this say about living standards?
2. Which country's economy grew more in 2016?
3. Which country has higher inflation in 2016?

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Step 3: Calculate economic growth.

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Step 4: Calculate inflation rate.

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