Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 23, Problem 6PA
Sub part (a):
To determine
Growth rate of nominal GDP .
Sub part (b):
To determine
Growth of GDP deflator.
Sub part (c):
To determine
Real GDP.
Sub part (d):
To determine
Real GDP.
Sub part (e):
To determine
Growth of real GDP.
Sub part (f):
To determine
The nominal and real GDP and inflation.
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Consider the following data on U.S. GDP:
Year
Nominal GDP
GDP Deflator
(Billions of dollars)
(Base year 2009)
2016
18,707
105.93
1996
8,073
73.18
The growth rate of nominal GDP between 1996 and 2016 was , and the growth rate of the GDP deflator between 1996 and 2016 was . (Hint: The growth rate of a variable XX over an NN-year period is calculated as 100×((XfinalXinitial)(1N)−1)100×XfinalXinitial1N−1)
Measured in 2009 prices, real GDP was billion in 1996 and billion in 2016. (Note: Select the answers closest to the values you compute.)
The growth rate of real GDP between 1996 and 2016 was .
The growth rate of nominal GDP between 1996 and 2016 was than the growth rate of real GDP.
Consider the following data on the Pakistan economy:
Nominal GDP GDP Deflator
Year (in billions of rupees) (base year 2012)
2018 21,501 111.4
1998 9,163 76.3
What was the growth rate of nominal GDP between 1998 and 2018? (Hint: The growth rate of a variable X over an N-year period is calculated as [(Xfinal/Xinitial)1/N – 1] x 100).
What was the growth rate of the GDP deflator between 1998 and 2018?
What was real GDP in 1998 measured in 2012 prices?
What was real GDP in 2018 measured in 2012 prices?
What was the growth rate of real GDP between 1998 and 2018?
Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP? Explain.
1. The following table shows Spain's (awalizr) quarterly real GDP growth rates for the 2007–2012 period.
(Roman numbers refer to quarters.)
Variable
2007 2007 2007 2007 2008
2008
I
II
III
IV
I
II
Real GDP
7.6
7.3
6.5
6.4
5.6
4.6
Variable
2008 2008 2009 2009 2009 2009
III
IV
I
II
III
IV
Real GDP
3.1
0.5
-0.1 -4.1 -4.5 -3.3
Variable
2010 2010 2010 2010 2011 2011
I
II
III
IV
I
II
Real GDP -1.5 -0.2
0.0
0.4
0.5
0.5
Variable
2011
2011
2012 2012 2012 2012
III
IV
II
III
IV
Real GDP
0.6
0.0
-0.7 -1.4 -1.6 -1.9
а)
Plot real GDP growth rate in a graph, and identify a trend in the data.
b)
Based on the data shown, identify the beginning (i.e., the year and the quarter) of the current
recession.
2. Unemployment is a very important topic in macroeconomics. A high unemployment rate means that a lot
of individuals willing to work cannot find a job. This is bad for the economy, as some resources (i.e., labour)
remain idle.
Comment on the effects that being unemployed have on an individual.
Chapter 23 Solutions
Principles of Economics, 7th Edition (MindTap Course List)
Ch. 23.1 - Prob. 1QQCh. 23.2 - Prob. 2QQCh. 23.3 - Prob. 3QQCh. 23.4 - Prob. 4QQCh. 23.5 - Prob. 5QQCh. 23 - Prob. 1QRCh. 23 - Prob. 2QRCh. 23 - Prob. 3QRCh. 23 - Prob. 4QRCh. 23 - Prob. 5QR
Ch. 23 - Prob. 6QRCh. 23 - Prob. 7QRCh. 23 - Prob. 8QRCh. 23 - Prob. 1QCMCCh. 23 - Prob. 2QCMCCh. 23 - Prob. 3QCMCCh. 23 - Prob. 4QCMCCh. 23 - Prob. 5QCMCCh. 23 - Prob. 6QCMCCh. 23 - Prob. 1PACh. 23 - Prob. 2PACh. 23 - Prob. 3PACh. 23 - Prob. 4PACh. 23 - Prob. 5PACh. 23 - Prob. 6PACh. 23 - Prob. 8PACh. 23 - Prob. 9PACh. 23 - Prob. 10PACh. 23 - Prob. 11PA
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