(b) The table below shows GDP at current prices (money GDP) and an appropriate price index (the implicit price deflator) for a group of selected years. Compute GDP at constant 2014-15 prices (real GDP). Also calculate real GDP growth. GDP at current pricesImplicit price deflator GDP at constant 2014-15 pricesEconomic GrowthYear($ million)(2014-15 = 100)Calculation($ million) 2013-1478351497.2 2014–15838011100 2015-16892999104.1 2016-17967721108.4 2017-18984450110.1

Real GDP can be calculated using the formula given below: Calculate Real GDP of 2013-2014 at…

Answered: (b) The table below shows GDP at…

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter8: Economic Fluctuations, Unemployment, And Inflation

Section: Chapter Questions

Problem 14CQ

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(b) The table below shows GDP at current prices (money GDP) and an appropriate price index (the implicit price deflator) for a group of selected years. Compute GDP at constant 2014-15 prices (real GDP). Also calculate real GDP growth.

	GDP at current prices	Implicit price deflator		GDP at constant 2014-15 prices	Economic Growth
Year	($ million)	(2014-15 = 100)	Calculation	($ million)

2013-14	783514	97.2
2014–15	838011	100
2015-16	892999	104.1
2016-17	967721	108.4
2017-18	984450	110.1

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

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