For the next four questions, you will need to use data on gross domestic product
ID: 1151429 • Letter: F
Question
For the next four questions, you will need to use data on gross domestic product. Specifically, you will need NIPA table 1.1.5 (Nominal Gross Domestic Product), and NIPA table 1.1.6 (Real Gross Domestic Product, Chained dollars). I have posted the tables to make it easier for you to access (files named NGDP.xlsx and RGDP.xlsx). Notice table 1.1.6 is chained to 2009 dollars (billions), meaning that 2009 is the base year. The data you will be working with is the first row of data from each table.
1- Based on these data, indicate one year in which nominal GDP growth was positive, while real GDP growth was negative? (indicate your answer in the YYYY format. For example, 1999)
2- Nominal GDP and real GDP in 1929 were quite different. One was many times larger than the other. Which one was larger and by approximately how much?
Nominal GDP was approximately 20 times larger than real GDP
Real GDP was approximately 20 times larger than nominal GDP
Nominal GDP was approximately 10 times larger than real GDP
Real GDP was approximately 10 times larger than nominal GDP
3-Suppose we want to use 2010 as the base year instead of 2009. Using 2010 as a base, how much is real GDP in 2012 (use two decimals)?
4- Suppose we want to use 2010 as the base year instead of 2009. Using 2010 as a base, how much is real GDP in 2005 (use two decimals)?
Nominal Gross Domestic Product?
Real Gross Domestic Product?
Nominal GDP was approximately 20 times larger than real GDP
28, 12 6 9 5 2 2 3 2 3 7 1 1-1?651733 96 8829 .6 6 5 7 8 1 2 1 6 .4 5 2 5 9-29639817_386 2067249 10 8 2 11-0 43163380928 .1 9 3 5 9 6 4 1 6 8 7 1 6 7 2 4 9 1 34815876 03 9 5 7 8 3 7 8 6 1 3 1 1-0-2 2163299828 6857: 4 3 1 9 7 2 4 121-043 42165338 9363376 .2 5 6 2 8 6 4 591847768848 21483 30 4 2 8 2 5 0 3 2 1 4 4 0 3 2 0 1 62 8 1 6 2 30300 303205614 93 6 3 7 3 2 1 ,4 3 6 1 9 3 9 5 3 1 4 8 2 6 1 82682729543 .9 2 6 7 2 2 4 2 4 9 9 6 8 2 1 36425648447 82.. 6 2 6 9 8 6 1 3011-0 2032035147 2013127 4535 26 2 7 6 4 1 2011-0220 18432443120 0022021003027 6 2988223731 .4 4 7 4 1 2 7 3 9 5 4 9 4, 1 55 .5 7 1 4 2 6 8 2 3 4 5 4 9 4 0 2 7 3 9 3 6 9 2117 584 221431100-2 10110 2.5 2. .6 4 8 8 9 6 2 6 6 5 5 6 1 54, 9 3 6 6 5 1 6 9187 04 7 4 9 3 3 1 5155041055054191 07 1 2 3 4 5 6 7 8 9 20 21 22 3 4 5 6 04 5 .07 sExplanation / Answer
1- In year 1980 Real GDP declined from 6466.2 in 1979 to 6450.4 in year 1980 which shows a negative growth of real GDP. Whereas Nominal GDP increased from 2632.1 in 1979 to 2862.5 in 1980.
2- Real GDP( 1056.6) was approximately 10 times larger than the Nominal GDP(104.6) in year 1929.
3- If we want to use 2010 as base year instead of 2009, Real GDP of 2012 will be = Real GDP at present × real GDP in 2010/real GDP in 2009=15354.6×14783.8/14418.7=15743.39.
4- For year 2005, Real GDP with base year 2010 will be 14234.2×14783.8/14418.7=14594.62.