ECN 204 Final: ECN 204 Formula Sheet.docx

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goldswan943

13 Mar 2012

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Document Summary

Gdp =c +i + g + x (exports imports) Price index = price of market basket in specific year / price of market basket in base year x100. Real gdp = nominal gdp / price index x100. Gdp deflator = nominal gdp / real gdp x100 (basically same thing as the calculation for r-gdp) Rate of growth = real gdp y2 real gdp y1 / real gdp y1 x100. Read gdp per capita = real gdp / population. Use this equation, in separate calculations, to solve for each year. Real gdp growth rate per capita = r-gdp capita y2 r-gdp capita y1 / r-gdp capita y1 x100. % change in price level = price of market basket in specific year price of market basket in base year / price of market basket in base year x100. Inflation rate = gdp deflation (current year) gdp deflator (previous year) / gdp deflator (previous year) x100.

Related Questions

Given nominal GDP of $4.2 trillion and a GDP Deflator is 120, we can conclude that real GDP is equal to:

	A.	$3 Trillion.
	B.	$3.5 Trillion.
	C.	$3.9 Trillion.
	D.	$5.2 Trillion.

Say real GDP is $9.2 trillion. If personal consumption is $5.1 trillion, investment is 1.8 trillion, and government purchases are 2.5 trillion, then:

	A.	personal consumption is less than exports.
	B.	exports exceed imports by $0.2 trillion.
	C.	imports are equal to exports.
	D.	imports exceed exports by $0.2 trillion.

3. If nominal output is $4.2 trillion and the GDP Deflator is 5 percent higher than its base year, then real output is:

4. If the CPI in 1979 was 72.6 and it was 82.4 in 1980, then the inflation rate from 1979 to 1980 was?

5. Housing comprises roughly 40% of the market basket in the CPI. If the price of housing rises 15% in one year while the other components in the CPI rise by 10%, the CPI will rise by 12%. True or False?

Complete the table below. Which of the values you calculated is the best measure of economic wellbeing? Explain. (Hint: % change = ((new value/original value) - 1)x 100: (9)

Year

Nominal

GDP

Price Index

Population

Real GDP

Nominal GDP Per Capita

Real GDP Per Capita

2010

$32 billion

100