Use the following information about GDP an economy for the next 9 questions. 200

ID: 1161943 • Letter: U

Question

Use the following information about GDP an economy for the next 9 questions.

2003: nominal GDP = $101,000; real GDP = $104,000

2004: nominal GDP = $110,000; real GDP = $109,000

2005: nominal GDP = $115,000; real GDP = $115,000

1. What is the growth rate of nominal GDP for 2004? (growth rate from 2003 - 2004)

2.What is the growth rate of nominal GDP for 2005? (growth rate from 2004 - 2005)

3.What is the growth rate of real GDP for 2004? (growth rate from 2003 - 2004)

4.What is the growth rate of real GDP for 2005? (growth rate from 2004 - 2005)

5.What is the GDP deflator for 2003?

6.What is the GDP deflator for 2004?

7.What is the GDP deflator for 2005?

8.What year is the base year?

9.What occurred from 2004 - 2005? (based on above information)

Ans 1)

Growth Rate of Nominal GDP from 2003-2004=(110000/101000)-1=8.91%

Growth Rate of Nominal GDP from 2003-2005=(115000/101000)-1=13.86%

Growth Rate of Real GDP from 2003-2004=(109000/104000)-1=4.807%

Growth Rate of Real GDP from 2003-2005=(115000/104000)-1=10.57%

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