Period 1 Period 2 period 3 period 4 period5 Nominal GDP($billion) 3534.6 6667.4
ID: 1247861 • Letter: P
Question
Period 1 Period 2 period 3 period 4 period5
Nominal GDP($billion) 3534.6 6667.4 8793.5 11142.1 14441.4
GDP deflator(base=100) 56.880 77.610 85.125 93.496 107.534
Given the infomation about the Vulagiran econamy in above table, calculate the real GDP growth rate for each stated time interval
a) period 1 to period 2 b) period 2 to period 3 c) period 3 to period 4
d) period 4 to period 5 e) period 1 to period 5
Explanation / Answer
The basic formula for calculating the GDP is: Y = C + I + E + G where Y = GDP C = Consumer Spending I = Investment made by industry E = Excess of Exports over Imports G = Government Spending