34% 11/07/17 Part 1 (1 point) Feback See Hint Suppose that nominal GDP was $9000

Question

34% 11/07/17 Part 1 (1 point) Feback See Hint Suppose that nominal GDP was $9000000.00 in 2005 in Midland County Texas. In 2015 County Texas. The price level rose 3.00% between 2005 and 2015 and population gr th was for Midland County Texas between 2005 and 2015 nominal GDP was $11750000.00 in Midland 25% Calculate the following figures a, Nominal GDP growth was 030.5 %. Part 2 (1 point) Feedback See Hint b, Economic growthvas 2407 %. See Hint Part 3 (1point) Feedback 7 See Hint Part 4 (1point) Feedback 05,15 >

Explanation / Answer

1) Given,

Nominal GDP (2005) = $9000000

Nominal GDP (2015) = $11750000

Price Level Rise : 300%

Population Growth : 3.25%

Nominal GDP Growth = 11750000 - 9000000 / 9000000 *100

= 2750000 / 9000000 * 100

= 30.5%

2) Economic Growth is the percentage rise in the growth indicators like.

So Economic growth is the same as GDP Growth Rate.

Economic Growth : 30.5%

3) Inflation is the percentage rise in price level of the commodities.

Inflation was 3%.

Price Level rise : 300%

So Inflation is 300 - 0 /100

300/ 100

= 3%

4) Real GDP Growth rate takes into consideration the inflation rate as well and can be calculated by subtracting Inflation rate from the Nominal GDP Growth Rate.

So Real GDP Growth Rate = Nominal GDP Growth Rate - Inflation

30.5% - 3%

= 27.5%

So, Real GDPGrowth Rate = 27.5%

5) Per capita GDP Growth = GDP Growth Rate / Population Growth

= 30.5% / 3.25%

=9.38%

So, Per capita GDP Growth = 9.38%

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