Year Nominal GDP GDP Deflator (1972 = 100) 1929 103.4 32.76 1933 55.8 25.13 1939
ID: 1223950 • Letter: Y
Question
Year Nominal GDP GDP Deflator (1972 = 100)
1929 103.4 32.76
1933 55.8 25.13
1939 90.9 28.43
1973 1326.4 105.45
15. Using the numbers in Table 1, the value of 1929 GDP in 1972 dollars was a. 103.4 b. 32.76 c. 315.6 d. 3387.3
16. Using the numbers in Table 1, the value of 1933 GDP in 1972 dollars was a. 55.8 b. 222.0 c. 25.13 d. 1402.2
17. Using the numbers in Table 1, the drop in real GDP (measured in 1972 dollars) between 1929 and 1933 was a. 47.6 b. 93.6 c. 62.0 d. 78.8
18. According to the numbers in Table 1, between 1929 and 1933 the price level dropped a. 25.13 percent b. 7.63percent c. 23 percent d. 30 percent
Explanation / Answer
15. Real GDP 1929 = Nominal GDP / GDP Deflator X 100 = 103.4/32.76 X 100 = 3.156 X 100 = 315.6
Answer is c. 315.6
16. Real GDP in 1972 = 55.8/25.13 X 100 = 2.220 X 100 = 222.0
Answer is b. 222.0
17. Drop in real GDP between 1929 and 1933 = 315.6 - 222 = 93.6
Answer is b. 93.6
18. Between 1929 and 1933, the price level dropped by : (32.76 - 25.13)/25.13 X 100 = 0.3036 X 100 = 30 percent
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