Years 2011 2013 42,511 48,722 49,392 46,285 106 2012 2014 Nominal GDP 109.1 Consumer Price Index (base year= 2011) 100 Consumer Price Index (base year= 2012) 96.9 Table1. Kuwalt's nominal GDP and Consumer Price Indices. GDP is in Milion Dinars. Source: Central Bank of Kuwait. 103.2 100 102.8 105.7 1) Table 1 shows data on Kuwait's nominal GDP and two Consumer Price Indices (CPI). a. Use table 1 to calculate the year-over-year growth rate of Kuwait's "nominal" GDP for the years 2012, 2013, and 2014 using the following methods: 1. The simple formula growth rate of x = 100. [show your calculations) ii. The natural log method mentioned (show your calculations) b. Are there any differences in the results from the two methods? If yes, briefly explain why?
Years 2011 2013 42,511 48,722 49,392 46,285 106 2012 2014 Nominal GDP 109.1 Consumer Price Index (base year= 2011) 100 Consumer Price Index (base year= 2012) 96.9 Table1. Kuwalt's nominal GDP and Consumer Price Indices. GDP is in Milion Dinars. Source: Central Bank of Kuwait. 103.2 100 102.8 105.7 1) Table 1 shows data on Kuwait's nominal GDP and two Consumer Price Indices (CPI). a. Use table 1 to calculate the year-over-year growth rate of Kuwait's "nominal" GDP for the years 2012, 2013, and 2014 using the following methods: 1. The simple formula growth rate of x = 100. [show your calculations) ii. The natural log method mentioned (show your calculations) b. Are there any differences in the results from the two methods? If yes, briefly explain why?
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter23: Measuring A Nation's Income
Section: Chapter Questions
Problem 4PA
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Please make sure the answer is correct 100%
Transcribed Image Text:Years
2011
2012
2013
2014
42,511 48,722 49,392 46,285
109.1
Nominal GDP
Consumer Price Index (base year= 2011) 100
Consumer Price Index (base year= 2012) 96.9
103.2
106
100
102.8
105.7
Tabiel. Kuwait's nominal GDP and Consumer Price Indices. GDP is in Million Dinars.
Source: Central Bank of Kuwait.
![Years
2011
2012
2013
2014
42,511 48,722 49,392 46,285
106
102.8
Nominal GDP
109.1
105.7
Consumer Price Index (base year= 2011 ) 100
Consumer Price Index (base year= 2012) 96.9
Table1. Kuwait's nominal GDP and Consumer Price Indices. GDP is in Milion Dinars.
Source: Central Bank of Kuwait.
103.2
100
1) Table 1 shows data on Kuwait's nominal GDP and two Consumer Price Indices (CPI).
a. Use table 1 to calculate the year-over-year growth rate of Kuwait's "nominal" GDP for
the years 2012, 2013, and 2014 using the following methods:
i. The simple formula growth rate of x= 100. [show your calculations]
ii. The natural log method mentioned
[show your
calculations)
b. Are there any differences in the results from the two methods? If yes, briefly explain
why?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3b80b4a4-e0d3-4cc7-9516-1d683ec41bf8%2F598d0dd4-b802-421e-bae0-135e47633930%2Fdr2tkui_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Years
2011
2012
2013
2014
42,511 48,722 49,392 46,285
106
102.8
Nominal GDP
109.1
105.7
Consumer Price Index (base year= 2011 ) 100
Consumer Price Index (base year= 2012) 96.9
Table1. Kuwait's nominal GDP and Consumer Price Indices. GDP is in Milion Dinars.
Source: Central Bank of Kuwait.
103.2
100
1) Table 1 shows data on Kuwait's nominal GDP and two Consumer Price Indices (CPI).
a. Use table 1 to calculate the year-over-year growth rate of Kuwait's "nominal" GDP for
the years 2012, 2013, and 2014 using the following methods:
i. The simple formula growth rate of x= 100. [show your calculations]
ii. The natural log method mentioned
[show your
calculations)
b. Are there any differences in the results from the two methods? If yes, briefly explain
why?
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