4. Total real production of goods and services in the US increased 10 times sinc

Question

4. Total real production of goods and services in the US increased 10 times since what year? _______.

5. In 1930 the US population was 123 million; in 2016 it was 323 million. Using total real GDP data from the table, compute real GDP per capita then and now. How many times richer is an average person now compared to an average person in 1930? Show work.

6. Explain why GDP is not an accurate measure of wellbeing.

Nominal and "Real" Gross Domestic Product Source: http://www.bea.gov/national Real GDP in Real GD GDP in billions of billionsof real GDP in billions of billions,of real in 2009 GDP % dollars change current 2009 GDP % current 104.6 1,056.6 19731,428.5 5,424.1 19741,548.8 5,396.0 1975 1,688.9 5,385.4 1976 1,877.65,675.4 1977 2,086.0 5,937.0 1978 2,356.6 6,267.2 1979 2,632.1 6,466.2 5.6 904.8 59.5 788.2 -12.9 1933 862.2 939.0 10.8 5.6 1936 B4.91,060.5 12.91980 2,862.5 6,450.4-0.2 1937 1939 1940 93.0 1,114.6 87.4 1,077.7 93.5 1,163.6 102.9 1,266.1 1981 3,211.0 6,617.7 1982 3,345.0 6,491.31.9 1983 3,638.1 6,792.0 19844,040.77,285.0 1985 4,346.77,593.8 1986 4,590.2 7,860.5 19874,870.2 8,132.6 19885,252.6 8,474.5 1989 5,657.78,786.4 1990 5,979.6 8,955.0 1991 6,174.08,948.4 -0.1 1992 6,539.3 9,266.6 1993 6,878.79,521.0 1994 7,308.8 9,905.4 1995 7,664.1 10,174.8 1996 8,100.2 10,561.0 1997 8,608.5 11,034.9 1998 9,089.2 11,525.9 1999 9,660.6 12,065.9 2000 10,284.8 12,559.7 2001 10,621.8 12,682.2 2002 10,977.5 12,908.8 2003 11,510.7 13,271.1 2004 12,274.9 13,773.5 2005 13,093.7 14,234.2 2006 13,855.9 14,613.8 2007 14,477.6 14,873.7 2008 14,718.6 14,830.4 2009 14,418.7 14,418.7 2010 14,964.4 14,783.8 2011 15,517.9 15,020.6 2012 16,155.3 15,354.6 2013 16,691.5 15,612.2 2014 17,427.6 16,013.3 2015 18,120.7 16,471.5 2016 18,624.5 16,716.2 129.4 1,490.3 17.7 166.0 1,771.8 18.9 203.1 2,073.7 17.0 942 224.6 2,239.4 228.2 2,217.8 227.8 1,960.9 11.6 249.9 1,939.41.1 1947 274.8 2,020.0 1949 272.82,008.90.5 300.2 2,184.0 347.3 2,360.0 367.7 2,456.1 389.7 2,571.4 391.1 2,556.9 -0.6 426.2 2,739. 450.1 2,797.4 474.92,856.3 482.0 2,835.3 522.5 3,031.0 543.3 3,108.7 563.3 3,188.1 605.1 3,383.1 638.6 3,530.4 685.8 3,734.0 743.7 3,976.7 815.0 4,238.9 861.74,355.2 942.5 4,569.0 1969 1,019.9 4,712.5 1970 1,075.9 4,722.0 1971 1,167.8 4,877.6 1972 1,282.4 5,134.3 2.5 1967 2.2

Explanation / Answer

(4)

Total real production (= Real GDP) in 2016 = $16,716.2 billion

If it has increased by 10 times compared to year N, then

Real GDP in year N = $16,716.2 billion / 10 = $1,671.62 billion

Real GDP in year 1941 was $1,490.3 billion, therefore real GDP has increased 10 times since year 1941.

(5) Real GDP per capita = Real GDP / Population

1930: $966.7 billion / 123 million = $966,700 million / 123 million = $7,859.45

2016: $16,716.2 billion / 323 million = $16,716,200 million / 323 million = $51,752.94

So, the average person is now richer by ($51,752.94 / $7,859.45) = 6.58 times

NOTE: As per Chegg Answering Policy, first 2 questions are answered.

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