Year Honinal GDP GDP deflator Real GDP Population $1, 000, 000 $1. 050, 000 (2012 dollars) $1, 000, 000 $1,019, 417 1, 000 1, 005 2019 100 2020 103 a. Verify that the real GDP values in the above table are accurate. Instructions: Round your answers to one decimal place. b. This country's real GDP per capita for 2019 is $ This country's real GDP per capita for 2020 is $ c. The growth rate in this country's real GDP per capita between 2019 and 2020 is %. d. The growth rate in nominal GDP between 2019 and 2020 is |%. The growth rate in the GDP deflator between 2019 and 2020 is %. The growth rate in the population between 2019 and 2020 is %.
Year Honinal GDP GDP deflator Real GDP Population $1, 000, 000 $1. 050, 000 (2012 dollars) $1, 000, 000 $1,019, 417 1, 000 1, 005 2019 100 2020 103 a. Verify that the real GDP values in the above table are accurate. Instructions: Round your answers to one decimal place. b. This country's real GDP per capita for 2019 is $ This country's real GDP per capita for 2020 is $ c. The growth rate in this country's real GDP per capita between 2019 and 2020 is %. d. The growth rate in nominal GDP between 2019 and 2020 is |%. The growth rate in the GDP deflator between 2019 and 2020 is %. The growth rate in the population between 2019 and 2020 is %.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
answer A,B,C and D
Transcribed Image Text:Reference equation: Real GDP per capita growth rate = Nominal GDP growth rate - Inflation rate - Population growth rate.
This equation is an approximation of the exact rate of growth of GDP per capita, and so it results in some errors when calculating this
rate. However, the simplified equation is both easy to use and results in small error terms when inflation, nominal GDP growth, and
population growth are low, and so it is a useful approximation. The table below lists a fictional country's nominal GDP, real GDP, GDP
deflator, and population over two years.
Year
Nominal GDP
GDP deflator
Real GDP
Population
(2012 dollars)
$1, 000, 000
$1, 050, 000
2019
100
$1, 000, 000
1, 000
2020
103
$1, 019, 417
1, 005
a. Verify that the real GDP values in the above table are accurate.
Instructions: Round your answers to one decimal place.
b. This country's real GDP per capita for 2019 is $
This country's real GDP per capita for 2020 is $
c. The growth rate in this country's real GDP per capita between 2019 and 2020 is
%.
d. The growth rate in nominal GDP between 2019 and 2020 is
%.
The growth rate in the GDP deflator between 2019 and 2020 is|
%.
The growth rate in the population between 2019 and 2020 is
%.
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