GDP Year 2011 2012 2013 2014 2015 (Billions of current dollars) 15,517.9 16,155.
ID: 1163069 • Letter: G
Question
GDP Year 2011 2012 2013 2014 2015 (Billions of current dollars) 15,517.9 16,155.3 16,663.2 17,348.1 17,942.9 (Billions of 2009 dollars) 15,020.6 15,354.6 15,583.3 15,961.7 16,345.0 Source: National Economic Accounts."U.S. Bureau of Economic Analysis. The percentage change in nominal GDP from 2012 to 2013 was The percentage change in real GDP from 2013 to 2014 was True or False: The percentage change in real GDP from 2012 to 2013 was higher than the percentage change in real GDP from 2013 to 2014 ?? True FalseExplanation / Answer
Ans:
1) The percentage change in nominal GDP from 2012 to 2013 = 3.14%
2) The percentage change in real GDP from 2013 to 2014 = 2.43%
3) False
The percentage change in real GDP from 2013 to 2014 is 2.43% and The percentage change in real GDP from 2012 to 2013 is 1.49%.Hence it is false to say that percentage change in real GDP from 2012 to 2013 is higher than percentage change in real GDP from 2013 to 2014.
Analysis
1) The percentage change in nominal GDP from 2012 to 2013 = (nominal GDP 2013 - nominal GDP 2012) / nominal GDP 2012
The percentage change in nominal GDP from 2012 to 2013 = ($16,663.2 billion - $16,155.3 billion) / $16,155.3 billion
The percentage change in nominal GDP from 2012 to 2013 = $507.9 billion / $16,155.3 billion
= 0.0314 or 3.14%
2) The percentage change in real GDP from 2013 to 2014 = (real GDP 2014 - real GDP 2013) / real GDP 2013
= ($15,961.7 billion - $15583.3 billion) / $15583.3 billion
= $378.4 billion / $15583.3 billion
= 0.0243 or 2.43%
3)The percentage change in real GDP from 2012 to 2013 = (real GDP 2013 - real GDP 2012) / real GDP 2012
= ($15,583.3 billion - $15,354.6 billion) / $15,354.6 billion
= $228.7 billion / $15,354.6 billion
= 0.0149 or 1.49%
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