Bundle: Principles of Economics, Loose-leaf Version, 8th + LMS Integrated MindTap Economics, 2 terms (12 months) Printed Access Card
8th Edition
ISBN: 9781337607735
Author: N. Gregory Mankiw
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 23, Problem 7PA
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.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
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.
Nominal GDP
(billions of
cunent $)
GDP
defatar
Population
growth
101%
Date
2007
$14,0618
10630
2008
143691
10n.62
0.93%
2009
14,129.0
109.61
2010
14,660.4
0S0%
Use the data in the table above to calculate the economic growth rate for the United States from 2008 to 2009. Give your
answer to two decimals.
Note that all data is from the end of the year specified.
Chapter 23 Solutions
Bundle: Principles of Economics, Loose-leaf Version, 8th + LMS Integrated MindTap Economics, 2 terms (12 months) Printed Access Card
Ch. 23.1 - Prob. 1QQCh. 23.2 - Prob. 2QQCh. 23.3 - Prob. 3QQCh. 23.4 - Prob. 4QQCh. 23.5 - Prob. 5QQCh. 23 - Prob. 1CQQCh. 23 - Prob. 2CQQCh. 23 - Prob. 3CQQCh. 23 - Prob. 4CQQCh. 23 - Prob. 5CQQ
Ch. 23 - Prob. 6CQQCh. 23 - Prob. 1QRCh. 23 - Prob. 2QRCh. 23 - Prob. 3QRCh. 23 - Prob. 4QRCh. 23 - Prob. 5QRCh. 23 - Prob. 6QRCh. 23 - Prob. 7QRCh. 23 - Prob. 8QRCh. 23 - Prob. 1PACh. 23 - Prob. 2PACh. 23 - Prob. 3PACh. 23 - Prob. 4PACh. 23 - Prob. 5PACh. 23 - Prob. 6PACh. 23 - Prob. 7PACh. 23 - Prob. 9PACh. 23 - Prob. 10PACh. 23 - Prob. 11PACh. 23 - Prob. 12PA
Knowledge Booster
Similar questions
- Year Real GDP Nominal GDP 2019 $15,292.67 $17,081.38 2020 $17,822.90 $18,350.11 2021 $18,521.37 $19,397.19 Refer to the table above. What is the growth rate in real GDP from 2020 to 2021? Answer this as a percentage and round your answer to two digits after the decimal without the percentage sign. ex. If you found the rate to be 5.125%, answer 5.13.arrow_forward1. 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.arrow_forwardThe following table shows data on a hypothetical country's Real GDP from 1970 through 1978: Real GDP Year (Billions of Dollars) 1970 465 1971 470 1972 475 1973 485 1974 510 1975 505 1976 495 1977 490 1978 500 The green line on the following graph shows the economy's long-term growth trend. Lise the blue points (circle symbol) to plot the Real GDP in each of the years listed. (Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.) Next, place the black point (plus symbol) on the graph to indicate the point on the Real GDP curve that delinitely represents a peak. Finally, place the grey point (star symbol) on the graph to indicate the point on the Real GDP curve that delinitely represents a trough. 550 540 Real GDP 530 520 510 Peak 500 490 Traugh Growth trend 480 470 460 450 1970 1971 1972 1973 1974 1975 1978 1977 1978 YEAR Calculate the percentage change in Real GDP in each of the years shown. (Hint: The…arrow_forward
- The United States gross national product in trillions of dollars for the latter half of the 1980s is given in the table below. Year 1985 1986 1987 1988 1989 GNP ($trillion) 4.02 4.23 4.52 4.88 5.20 1. Using technology, calculate the average rate of change for each year. You may, for example, make a table in a spreadsheet with Year, GNP, and Average Rate of Change, as the three columns. What are the independent and dependent variables? 2. Using technology, create a plot of GNP vs year. Does the data appear to be linear? Explain. 3. Using technology, construct a linear trendline and determine the R2 value. What is the trendline equation? Interpret the slope, including units. What is the R2 value? Is there a strong or weak correlation? 4. Using the trendline equation, create a spreadsheet table and second plot of GNP vs year, extending the data through 1995. What GNP does your trendline predict for 1993? Explain in the context of the problem. 5. In what year does the trendline predict the…arrow_forwardWhy the use real GDP is preferred by economists over nominal GDP to gauge economic well-being? 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 a) 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). b) What was the growth rate of the GDP deflator between 1998 and 2018? What was real GDP in 1998 measured in 2012 prices? a) What was real GDP in 2018 measured in 2012 prices? b) What was the growth rate of real GDP between 1998 and 2018? c) Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP? Explain.arrow_forwardTable 23-3 The following table reports nominal and real GDP for the U.S. from 1929 to 1932. Year 1929 1930 1931 1932 Nominal GDP (Billions of dollars) 103.6 91.2 76.5 58.7 Real GDP (Billions of dollars) 977 892.8 834.9 725.8 Refer to Table 23-3. What was the growth rate of real GDP for 1930? -9.43%. Nominal GDP is a better gauge of economic well-being than real GDP. -9.43%. Real GDP is a better gauge of economic well-being than nominal GDP. -8.62%. Nominal GDP is a better gauge of economic well-being than real GDP. -8.62%. Real GDP is a better gauge of economic well-being than nominal GDP.arrow_forward
- 10. The (real) GDP per capita in Belgium (in €) is provided for several years in the table below: year GDP 2010 33 509.07 2011 33 641.30 2012 33 443.71 2013 33 259.76 2014 33 728.14 2015 34 028.24 2016 34 209.76 a. Let us denote GDP in year t by Yt. Determine the percentage change for each year using the formula rt = Y-Y-1. Compare the results to the log-returns In (). 1 b. You are also given that Y1990 = 25 039.06. Again compare the percentage change over the period 1990-2016 with the corresponding log-return. There are several reasons why percentage changes are often approximated by log-returns. One of the reasons is that the logarithm has nice mathematical properties. For example: log-returns allow for easier time aggregation as is illustrated in parts c. and d. below. c. Show that the percentage change Y2016-Y2013 over the three-year period from 2013 to 2016 equals (1+r2016) (1+r2015)(1+r2014) - 1. d. Show that the log-return In (Y2016) for the same period is simply the sum of the…arrow_forwardThe figure below graphs log GDP for periods t = 1, t = 2, t = 3, t = 4, and t = 5. log GDP log 115. log 110. log 108 log 105 log 100 2 3 4 5 time (a) Calculate the rate of growth of GDP between periods 2 and 3. (b) Calculate the slope of the red line in the figure. (c) What is the geometric average rate of growth of GDP between time 1 and time 5?arrow_forwardIn 1950 GDP in the United Kingdom (measured in year 2005 pounds) was £317 billion. In 2000 it was £1,108 billion. Calculate the growth rate of real GDP in the United Kingdom over this period. Now suppose that the United Kingdom grows at the same rate for the 50 years following 2000. What will the UK real GDP be in the year 2050?arrow_forward
- Using the table below, determine the growth in real GDP from 1990 to 2005. Round your answer to the nearest whole percent. Year 1960 1975 1990 2005 Nominal GDP (billions of dollars) 543.3 1688.9 5979.6 13095.4 Real GDP (billions of 2005 dollars) 2859.5 4952.8 8225 13095.4arrow_forward+ Real GDP (Billion of 2000 dollars) Year 2002 $8,700 2003 8,875 2004 9,000 2005 9,280 6. Refer to the table above. Calculate the growth rate of real GDP from 2004 to 2005. A) 3% B) 1% C) 2% B) 1.5% C) 1% D) 4% D) 2% 7. Refer to the table above. Calculate the average annual growth rate from 2002 to 2005. A) 3%arrow_forwardThe table above gives the prices and quantities for a fictional country that only produces video games and movies. What is the growth rate of Nominal GDP from 2007 to 2008? 100% 200% 6,300 12,600 Here is the chart!! : 2007 2007 2008 2008 Video games Price ($) Quantity Price ($) Quantity Movies 60 100 60 200 15 20 12 50arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
