Essentials of Economics (MindTap Course List)
8th Edition
ISBN: 9781337091992
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 15, Problem 7PA
Sub part (a):
To determine
Growth rate of nominal
Sub part (b):
To determine
Growth of GDP deflator.
Sub part (c):
To determine
Real GDP.
Sub part (d):
To determine
Real GDP.
Sub part (e):
To determine
Growth of real GDP.
Sub part (f):
To determine
The nominal and real GDP and inflation.
Expert Solution & Answer
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Consider the following data on U.S. GDP:
Year
Nominal GDP
GDP Deflator
(Billions of dollars)
(Base year 2009)
2016
18,707
105.93
1996
8,073
73.18
The growth rate of nominal GDP between 1996 and 2016 was , and the growth rate of the GDP deflator between 1996 and 2016 was . (Hint: The growth rate of a variable XX over an NN-year period is calculated as 100×((XfinalXinitial)(1N)−1)100×XfinalXinitial1N−1)
Measured in 2009 prices, real GDP was billion in 1996 and billion in 2016. (Note: Select the answers closest to the values you compute.)
The growth rate of real GDP between 1996 and 2016 was .
The growth rate of nominal GDP between 1996 and 2016 was than the growth rate of real GDP.
Consider the following data on the Pakistan economy:
Nominal GDP GDP Deflator
Year (in billions of rupees) (base year 2012)
2018 21,501 111.4
1998 9,163 76.3
What was the growth rate of nominal GDP between 1998 and 2018? (Hint: The growth rate of a variable X over an N-year period is calculated as [(Xfinal/Xinitial)1/N – 1] x 100).
What was the growth rate of the GDP deflator between 1998 and 2018?
What was real GDP in 1998 measured in 2012 prices?
What was real GDP in 2018 measured in 2012 prices?
What was the growth rate of real GDP between 1998 and 2018?
Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP? Explain.
Nominal GDP
(billions of
cunent $)
GDP
defatar
Population
growth
101%
Date
2007
$14,0618
10630
2008
143691
10n.62
0.93%
2009
14,129.0
109.61
2010
14,660.4
0S0%
Use the data in the table above to calculate the economic growth rate for the United States from 2008 to 2009. Give your
answer to two decimals.
Note that all data is from the end of the year specified.
Chapter 15 Solutions
Essentials of Economics (MindTap Course List)
Ch. 15.1 - Prob. 1QQCh. 15.2 - Prob. 2QQCh. 15.3 - Prob. 3QQCh. 15.4 - Prob. 4QQCh. 15.5 - Prob. 5QQCh. 15 - Prob. 1CQQCh. 15 - Prob. 2CQQCh. 15 - Prob. 3CQQCh. 15 - Prob. 4CQQCh. 15 - Prob. 5CQQ
Ch. 15 - Prob. 6CQQCh. 15 - Prob. 1QRCh. 15 - Prob. 2QRCh. 15 - Prob. 3QRCh. 15 - Prob. 4QRCh. 15 - Prob. 5QRCh. 15 - Prob. 6QRCh. 15 - Prob. 7QRCh. 15 - Prob. 8QRCh. 15 - Prob. 1PACh. 15 - Prob. 2PACh. 15 - Prob. 3PACh. 15 - Prob. 4PACh. 15 - Prob. 5PACh. 15 - Prob. 6PACh. 15 - Prob. 7PACh. 15 - Prob. 9PACh. 15 - Prob. 10PACh. 15 - Prob. 11PACh. 15 - Prob. 12PA
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