Years 2011 2013 42,511 48,722 49,392 46,285 106 2012 2014 Nominal GDP 109.1 Consumer Price Index (base year= 2011) 100 Consumer Price Index (base year= 2012) 96.9 Table1. Kuwalt's nominal GDP and Consumer Price Indices. GDP is in Milion Dinars. Source: Central Bank of Kuwait. 103.2 100 102.8 105.7 1) Table 1 shows data on Kuwait's nominal GDP and two Consumer Price Indices (CPI). a. Use table 1 to calculate the year-over-year growth rate of Kuwait's "nominal" GDP for the years 2012, 2013, and 2014 using the following methods: 1. The simple formula growth rate of x = 100. [show your calculations) ii. The natural log method mentioned (show your calculations) b. Are there any differences in the results from the two methods? If yes, briefly explain why?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Years
2011
2012
2013
2014
42,511 48,722 49,392 46,285
109.1
Nominal GDP
Consumer Price Index (base year= 2011) 100
Consumer Price Index (base year= 2012) 96.9
103.2
106
100
102.8
105.7
Tabiel. Kuwait's nominal GDP and Consumer Price Indices. GDP is in Million Dinars.
Source: Central Bank of Kuwait.
Transcribed Image Text:Years 2011 2012 2013 2014 42,511 48,722 49,392 46,285 109.1 Nominal GDP Consumer Price Index (base year= 2011) 100 Consumer Price Index (base year= 2012) 96.9 103.2 106 100 102.8 105.7 Tabiel. Kuwait's nominal GDP and Consumer Price Indices. GDP is in Million Dinars. Source: Central Bank of Kuwait.
Years
2011
2012
2013
2014
42,511 48,722 49,392 46,285
106
102.8
Nominal GDP
109.1
105.7
Consumer Price Index (base year= 2011 ) 100
Consumer Price Index (base year= 2012) 96.9
Table1. Kuwait's nominal GDP and Consumer Price Indices. GDP is in Milion Dinars.
Source: Central Bank of Kuwait.
103.2
100
1) Table 1 shows data on Kuwait's nominal GDP and two Consumer Price Indices (CPI).
a. Use table 1 to calculate the year-over-year growth rate of Kuwait's "nominal" GDP for
the years 2012, 2013, and 2014 using the following methods:
i. The simple formula growth rate of x= 100. [show your calculations]
ii. The natural log method mentioned
[show your
calculations)
b. Are there any differences in the results from the two methods? If yes, briefly explain
why?
Transcribed Image Text:Years 2011 2012 2013 2014 42,511 48,722 49,392 46,285 106 102.8 Nominal GDP 109.1 105.7 Consumer Price Index (base year= 2011 ) 100 Consumer Price Index (base year= 2012) 96.9 Table1. Kuwait's nominal GDP and Consumer Price Indices. GDP is in Milion Dinars. Source: Central Bank of Kuwait. 103.2 100 1) Table 1 shows data on Kuwait's nominal GDP and two Consumer Price Indices (CPI). a. Use table 1 to calculate the year-over-year growth rate of Kuwait's "nominal" GDP for the years 2012, 2013, and 2014 using the following methods: i. The simple formula growth rate of x= 100. [show your calculations] ii. The natural log method mentioned [show your calculations) b. Are there any differences in the results from the two methods? If yes, briefly explain why?
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