Provide the requested statistic 1.Nominal GDP increased from $5.8 trillion in 19

Question

Provide the requested statistic 1.Nominal GDP increased from $5.8 trillion in 1990 to $6.0 trillion in 1991. The GDP deflator rose over that same year by 3.9 percent. By how much did real output increase? 2. Real output rose from $8.03 trillion in 1995 to $8,33 trillion in 1996. The GDP deflator rose by 2.0 percent . By how much did nominal output rise? 3. Real output fell from $4.32 trillion in 1974 to $4.31 trillion in 1975. Nominal output rose from $1.5 trillion in 1974 to $1.64 trillion in 1975. By how much did the price level rise from 1974 to 1975?

Explanation / Answer

Real GDP (RGDP) = Nominal GDP (NGDP) / GDP Deflator

% Change in RGDP = % Change in NGDP - % Change in GDP Deflator

(1)

% Change in NGDP = ($6 trillion / $5.8 trillion) - 1 = 1.0345 - 1 = 0.0345 = 3.45%

% Change in RGDP = 3.45% - 3.90% = -0.45%

(2)

% Change in RGDP = ($8.33 trillion / $8.03 trillion) - 1 = 1.0374 - 1 = 0.0374 = 3.74%

% Change in NGDP = % Change in RGDP + % Change in GDP Deflator = 3.74% + 2% = 5.74%

(3)

% Change in NGDP = ($1.64 trillion / $1.5 trillion) - 1 = 1.0933 - 1 = 0.0933 = 9.33%

% Change in RGDP = ($4.31 trillion / $4.32 trillion) - 1 = 0.9977 - 1 = -0.0023 = -0.23%

% Change in GDP Deflator = % Change in NGDP - % Change in RGDP = 9.33% + 0.23% = 9.56%

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