The accompanying table provides the annual real GDP (in billions of 2009 dollars) and nominal GDP (in bil- lions of dollars) for the United States. 2009 2010 2011 2012 2013 Real GDP (billions 14,417.9 14,779.4 15,052.4 15,470.7 15,761.3 of 2009 dollars) Nominal GDP (billions 14,417.9 14,958.3 15,533.8 16,244.6 16,799.7 of dollars) a. Calculate the GDP deflator for each year. b. Use the GDP deflator to calculate the inflation rate for all years except 2009.
The accompanying table provides the annual real GDP (in billions of 2009 dollars) and nominal GDP (in bil- lions of dollars) for the United States. 2009 2010 2011 2012 2013 Real GDP (billions 14,417.9 14,779.4 15,052.4 15,470.7 15,761.3 of 2009 dollars) Nominal GDP (billions 14,417.9 14,958.3 15,533.8 16,244.6 16,799.7 of dollars) a. Calculate the GDP deflator for each year. b. Use the GDP deflator to calculate the inflation rate for all years except 2009.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:### GDP Data Analysis for the United States (2009-2013)
The accompanying table presents the annual Real GDP (in billions of 2009 dollars) and Nominal GDP (in billions of dollars) for the United States over the period from 2009 to 2013. This data is crucial for understanding the economic growth and inflation trends during this period.
#### Table Summary:
| Year | Real GDP (billions of 2009 dollars) | Nominal GDP (billions of dollars) |
|------|---------------------------------------|-----------------------------------|
| 2009 | 14,417.9 | 14,417.9 |
| 2010 | 14,779.4 | 14,958.3 |
| 2011 | 15,052.4 | 15,533.8 |
| 2012 | 15,470.7 | 16,244.6 |
| 2013 | 15,761.3 | 16,799.7 |
#### Analysis Tasks:
**a. Calculate the GDP deflator for each year:**
The GDP deflator is a measure of the level of prices of all new, domestically produced, final goods and services in an economy. It is calculated by dividing Nominal GDP by Real GDP and multiplying the result by 100.
**b. Use the GDP deflator to calculate the inflation rate for all years except 2009:**
The inflation rate can be determined by calculating the percentage change in the GDP deflator from one year to the next.
This data is useful for macroeconomic studies, allowing researchers, students, and policymakers to gauge the price changes and economic growth for the U.S. during these years. Adjustments to both real and nominal GDPs can reveal underlying economic conditions affecting the nation's economic policy and decisions.
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