Please calcuate the Real GDP and the Nominaal GDP You are provided with the foll

Question

Please calcuate the Real GDP and the Nominaal GDP

You are provided with the following hypothetical information regarding the United States for 2013: [All numbers are in billions of dollars]: Personal consumption expenditure Exports Government consumption expenditure Indirect Business Taxes GDP Deflator Gross Private Domestic Investment Imports Depreciation Nominal GDP for 2002 Real GDP for 2012 $7,760.9 $1,046.2 $2,075.5 $396.9 109.8 $1,665.8 $1,544.3 $1,353.9 $10,487.0 $9,876.5 Question: Based on the expenditure approach, how much was Nominal GDP for 2013?

Explanation / Answer

GDP = C(Personal consumption expenditure+G(Government expenditure)+I(Gross Investment)+X(Exports)-M(Imports)

=7760.9+2075.5+1665.8+1046.2-1544.3

=11004.1

Real GDP = Nominal GDP/GDP Deflator = 11004.1*100/109.8 = 10021.95

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