Question 6: GDP This question relates to Course Learning Objective 2 and is wort
ID: 1150417 • Letter: Q
Question
Question 6: GDP
This question relates to Course Learning Objective 2 and is worth 10 points.
The table below demonstrates the U.S. Nominal GDP and Price Level, from 2006-2015.
Year
Nominal GDP (billions of dollars)
Price Level (GDP deflator)
2006
13,855.9
95
2007
14,477.6
97
2008
14,718.6
99
2009
14,418.7
100
2010
14,964.4
101
2011
15,517.9
103
2012
16,155.3
105
2013
16,663.2
107
2014
17,348.1
109
2015
17,937.8
110
Use the information in the table to calculate the real 2015 gross domestic product in 2009 dollars. Explain how the calculation is performed and the reasoning behind it.
Year
Nominal GDP (billions of dollars)
Price Level (GDP deflator)
2006
13,855.9
95
2007
14,477.6
97
2008
14,718.6
99
2009
14,418.7
100
2010
14,964.4
101
2011
15,517.9
103
2012
16,155.3
105
2013
16,663.2
107
2014
17,348.1
109
2015
17,937.8
110
Explanation / Answer
Solution:
Formula used:
Real GDP = (Nominal GDP / GDP Deflator) x 100
The GDP deflator is based on a GDP price index
Year Nominal GDP (billions of dollars) Price Level (GDP deflator) Real GDP 2006 13,855.90 95 14,585.16 2007 14,477.60 97 14,925.36 2008 14,718.60 99 14,867.27 2009 14,418.70 100 14,418.70 2010 14,964.40 101 14,816.24 2011 15,517.90 103 15,065.92 2012 16,155.30 105 15,386.00 2013 16,663.20 107 15,573.08 2014 17,348.10 109 15,915.69 2015 17,937.80 110 16,307.09Related Questions
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