This Question: 2 pts 2 of 20 (1 complete) The GDP price index in the United Stat

Question

This Question: 2 pts 2 of 20 (1 complete) The GDP price index in the United States in 2001 was about 91, and real GDP in 2001 was $11.1 tilion (2005 dollars) The GDP price index in the United States in 2002 was about 92, and real GDP in 2002 was $11.4 trillion (2005 dollars) Calculate nominal GDP in 2001 and in 2002 and the percentage increase in nominal GDP between 2001 and 2002 >>Answer below to 1 decimal place Nominal GDP in 2001 is S trillion. Nominal GDP in 2002 is S trillion. The percentage increase in the nominal GDP between 2001 and 2002 is percent Enter your answer in each of the answer boxes. 0 start

Explanation / Answer

Answer

Nominal GDP=(real GDP/100)*price index

Nominal GDP in 2001

=(11.1/100)*91

=10.1 trillion

Nominal GDP in 2002

=(11.4/100)*92

=10.9 trillion

The growth in nominal GDP

=(NGDP in 2002-NGDP in 2001)/NGDP in 2001

=(10.48800-10.10100)/10.10100

=0.0383130383

=3.8%

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