Question 2.7: Calculate Growth Rate of Nominal GDP Now suppose there are more go

Question

Question 2.7: Calculate Growth Rate of Nominal GDP Now suppose there are more goods and services and the economy is now open to trade with other countries. Based on this generated data and since you have already calculated nominal and real GDP you will now determine the GDP deflator, real per capita GDP, as well as the growth rates in nominal GDP, real GDP, GDP deflator (price level), and real GDP per capita for this simple economy (Round your answer to two decimal places.) Calculate the Growth Rate of Nominal GDP from 2007 to 2008:

Explanation / Answer

Answer :GDP deflator =( Nominal GDP/ Real GDP)*100

Real GDP per capita= Real GDP / Total population

Growth rate of Nominal GDP (2007-2008) =

(Nominal 2008 - Nominal 2007/ Nominal 2007)*100

= (( 14712.8-14451 .9)/14451.9)*100 = 1.8052

Year GDP Deflator Real GDP per capita 2004 84.78 49.08 2005 91.86 47.80 2006 90.6 51.32 2007 92.48 51.84 2008 94.28 51.24 2009 95.00 49.50 2010 96.11 50.33 2011 98.11 50.70 2012 100 51.45 2013 101.7 52.01

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