Macroeconomics (7th Edition)
7th Edition
ISBN: 9780134738314
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Question
Chapter 8, Problem 8.3.10PA
Subpart (a):
To determine
Nigeria’s
Subpart (b):
To determine
Nigeria’s GDP.
Subpart (c):
To determine
Nigeria’s GDP.
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Table 23-3
The following table reports nominal and real GDP for the U.S. from 1929 to 1932.
Year
1929
1930
1931
1932
Nominal GDP
(Billions of dollars)
103.6
91.2
76.5
58.7
Real GDP
(Billions of dollars)
977
892.8
834.9
725.8
Refer to Table 23-3. What was the growth rate of real GDP for 1930?
-9.43%. Nominal GDP is a better gauge of economic well-being than real GDP.
-9.43%. Real GDP is a better gauge of economic well-being than nominal GDP.
-8.62%. Nominal GDP is a better gauge of economic well-being than real GDP.
-8.62%. Real GDP is a better gauge of economic well-being than nominal GDP.
Why the use real GDP is preferred by economists over nominal GDP to gauge economic well-being?
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
a) 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). b) What was the growth rate of the GDP deflator between 1998 and 2018?
What was real GDP in 1998 measured in 2012 prices? a) What was real GDP in 2018 measured in 2012 prices? b) What was the growth rate of real GDP between 1998 and 2018? c) Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP? Explain.
Using the table below, determine the growth in real GDP from 1990 to 2005. Round your answer to the nearest whole
percent.
Year
1960
1975
1990
2005
Nominal GDP
(billions of dollars)
543.3
1688.9
5979.6
13095.4
Real GDP
(billions of 2005
dollars)
2859.5
4952.8
8225
13095.4
Chapter 8 Solutions
Macroeconomics (7th Edition)
Ch. 8 - Prob. 8.1.1RQCh. 8 - Prob. 8.1.3RQCh. 8 - Prob. 8.1.4RQCh. 8 - Prob. 8.1.5RQCh. 8 - Prob. 8.1.6PACh. 8 - Prob. 8.1.7PACh. 8 - Prob. 8.1.8PACh. 8 - Prob. 8.1.9PACh. 8 - Prob. 8.1.10PACh. 8 - Prob. 8.1.11PA
Ch. 8 - Prob. 8.1.14PACh. 8 - Prob. 8.2.1RQCh. 8 - Prob. 8.2.2RQCh. 8 - Prob. 8.2.3RQCh. 8 - Prob. 8.2.4PACh. 8 - Prob. 8.2.9PACh. 8 - Prob. 8.2.10PACh. 8 - Prob. 8.3.1RQCh. 8 - Prob. 8.3.2RQCh. 8 - Prob. 8.3.3RQCh. 8 - Prob. 8.3.4PACh. 8 - Prob. 8.3.5PACh. 8 - Prob. 8.3.6PACh. 8 - Prob. 8.3.7PACh. 8 - Prob. 8.3.8PACh. 8 - Prob. 8.3.9PACh. 8 - Prob. 8.3.10PACh. 8 - Prob. 8.4.1RQCh. 8 - Prob. 8.4.3RQCh. 8 - Prob. 8.4.4PACh. 8 - Prob. 8.4.6PACh. 8 - Prob. 8.4.7PACh. 8 - Briefly discuss the accuracy of the following...Ch. 8 - Prob. 8.1RDECh. 8 - Prob. 8.2RDECh. 8 - Prob. 8.6RDECh. 8 - Prob. 8.7RDE
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