Year Nominal GDP
(in billions) GDP Deflator <<<<<<data
(base year 2005)
2009 $14,256 109.8
1999 $9,353 86.8
Question 1: What was real GDP in 1999 measured in 2005 prices?Round your answer to the nearest cent.
Question 2:. What was the growth rate of real GDP from 1999 to2009? Round your answer to one decimal place.
(in billions) GDP Deflator <<<<<<data
(base year 2005)
2009 $14,256 109.8
1999 $9,353 86.8
Question 1: What was real GDP in 1999 measured in 2005 prices?Round your answer to the nearest cent.
Question 2:. What was the growth rate of real GDP from 1999 to2009? Round your answer to one decimal place.
Related textbook solutions
Related questions
Real versus nominal GDP
Consider a simple economy that produces two goods: apples and oranges. The following table shows the prices and quantities for the goods over a three-year period.
| Year |
Apples
|
Oranges
|
||
|---|---|---|---|---|
| Price | Quantity | Price | Quantity | |
| (Dollars per apple) | (Number of apples) | (Dollars per orange) | (Number of oranges) | |
| 2010 | 1 | 120 | 1 | 195 |
| 2011 | 2 | 130 | 4 | 195 |
| 2012 | 4 | 130 | 4 | 145 |
A. Use the information from the previous table to fill in the following table.
| Year | Nominal GDP | Real GDP | GDP Deflator |
|---|---|---|---|
| (Dollars) | (Base year 2010, Dollars) | ||
| 2010 | |||
| 2011 | |||
| 2012 |
B. From 2011 to 2012, change in nominal GDP is __________, and real GDP is ________.
C. The inflation rate in 2012 was ____________.
D. Why is real GDP a more accurate measure of an economy's production than nominal GDP?
a. Real GDP does not include the value of intermediate goods and services, but nominal GDP does.
b. Real GDP includes the value of exports, but nominal GDP does not.
c. Real GDP is not influenced by price changes, but nominal GDP is.
Consider a simple economy that only produces two goods; apples and oranges. The following table shows prices and quantities over a 3 year period.
|
Price of |
Quantity of |
Price of |
Quantity of |
|
|
YEAR |
Apples |
Apples |
Oranges |
Oranges |
|
2012 |
2 |
20 |
1 |
10 |
|
2013 |
3 |
24 |
2 |
12 |
|
2014 |
4 |
30 |
3 |
20 |
Use the information from the previous table to fill out the following table:
|
Real GDP |
GDP |
||
|
YEAR |
Nominal GDP ($) |
(The base year 2012)($) |
Deflator |
|
2012 |
|||
|
2013 |
|||
|
2014 |
Choose one from each:
From 2013 to 2014, nominal GDP (increased or decreased) and real GDP (increased or decreased).
The inflation rate in 2014 was (10%, 40.6%, 29.4%, -28.9%, or -9.1%).
Why is real GDP a more accurate measure of an economyâs production than nominal GDP?
