Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

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