Question 1 Problem 1. The following table shows Nominal GDP for two consecutive years together with the GDP Deflator Index Calculate the following: a) Real GDP for each year. b) The inflation rate over the 1-year period from the first year to the second. c) The growth rate of Nominal GDP. d) The growth rate of Real GDP. Does the data seem to indicate a recession or a growing economy? Explain briefly e) Find the difference between the answer to c) and the answer to b). Year 2029 2030 Nominal GDP ($ billion). 5000 5350 GDP Deflator 240 252 Real GDP

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Question 1
Problem 1. The following table shows Nominal GDP for two consecutive years together with the GDP Deflator Index Calculate the following:
a) Real GDP for each year.
b) The inflation rate over the 1-year period from the first year to the second.
c) The growth rate of Nominal GDP.
d) The growth rate of Real GDP. Does the data seem to indicate a recession or a growing economy? Explain briefly.
e) Find the difference between the answer to c) and the answer to b).
Year
2029
2030
Nominal GDP ($ billion).
5000
5350
GDP Deflator
240
252
Real GDP
Transcribed Image Text:Question 1 Problem 1. The following table shows Nominal GDP for two consecutive years together with the GDP Deflator Index Calculate the following: a) Real GDP for each year. b) The inflation rate over the 1-year period from the first year to the second. c) The growth rate of Nominal GDP. d) The growth rate of Real GDP. Does the data seem to indicate a recession or a growing economy? Explain briefly. e) Find the difference between the answer to c) and the answer to b). Year 2029 2030 Nominal GDP ($ billion). 5000 5350 GDP Deflator 240 252 Real GDP
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