Consider the following data on U.S. GDP: NOMINAL GDPGDP DEFLATORYEAR(IN BILLIONS)(BASE YEAR 1992)19967,66211019978,111112a. What was the growth rate of nominal GDP between 1996 and 1997? (Note: The growth rate is the percentage change from one period to the next.)b. What was the growth rate of the GDP deflator between 1996 and 1997?c. What was real GDP in 1996 measured in 1992 prices?d. What was real GDP in 1997 measured in 1992 prices?e. What was the growth rate of real GDP between 1996 and 1997?f. Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP? Explain.
Consider the following data on U.S. GDP: NOMINAL GDPGDP DEFLATORYEAR(IN BILLIONS)(BASE YEAR 1992)19967,66211019978,111112a. What was the growth rate of nominal GDP between 1996 and 1997? (Note: The growth rate is the percentage change from one period to the next.)b. What was the growth rate of the GDP deflator between 1996 and 1997?c. What was real GDP in 1996 measured in 1992 prices?d. What was real GDP in 1997 measured in 1992 prices?e. What was the growth rate of real GDP between 1996 and 1997?f. Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP? Explain.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter15: Measuring A Nation's Income
Section: Chapter Questions
Problem 7PA
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Consider the following data on U.S. GDP:
| NOMINAL GDP | GDP DEFLATOR |
YEAR | (IN BILLIONS) | (BASE YEAR 1992) |
1996 | 7,662 | 110 |
1997 | 8,111 | 112 |
a. What was the growth rate of nominal GDP between 1996 and 1997? (Note: The growth rate is the percentage change from one period to the next.)
b. What was the growth rate of the GDP deflator between 1996 and 1997?
c. What was real GDP in 1996 measured in 1992 prices?
d. What was real GDP in 1997 measured in 1992 prices?
e. What was the growth rate of real GDP between 1996 and 1997?
f. Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP? Explain.
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