EBK FOUNDATIONS OF ECONOMICS
8th Edition
ISBN: 8220103632225
Author: PARKIN
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 21.A, Problem 5SPP
To determine
To compare:
Growth rates of nominal and real GDP in 2016.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Nominal GDP of country B grows from $30 billion to $33 billion between 2020 and
2021. Between 2020 and 2021, inflation rate is 6% and population growth rate is 2%.
Calculate economic growth rate between 2020 and 2021.
Answer: Economic growth rate =
Determine the GDP trend in economic growth over the period of 1989 – 1999.
Country/Area
Year
Unit
Gross Domestic Product (GDP)
Thailand
1989
Baht
1,924,426,113,246
Thailand
1990
Baht
2,263,299,209,116
Thailand
1991
Baht
2,583,490,817,016
Thailand
1992
Baht
2,935,677,642,139
Thailand
1993
Baht
3,263,426,000,000
Thailand
1994
Baht
3,689,090,000,000
Thailand
1995
Baht
4,217,614,000,000
Thailand
1996
Baht
4,638,604,000,000
Thailand
1997
Baht
4,710,310,000,000
Thailand
1998
Baht
4,701,553,000,000
Thailand
1999
Baht
4,789,826,000,000
Transport,
storage and
communication
Wholesale, retail
Agriculture,
hunting, forestry,
fishing (ISIC A-B)
Other
Mining,
Manufacturing,
Utilities (ISIC C-E) (ISIC D)
trade, restaurants
Total
Manufacturing Construction and hotels (ISIC G-
Activities Value
Country/Area Year Unit
(ISIC F)
H)
(ISIC I)
(ISIC J-P) Added
Thailand
1989 Percentage
9.8
15.5
16.1
28.9
9.7
10.6
8.2
11.9
Thailand
1990 Percentage
-4.7
15.1
15.6
21.9
10.9
14
13.8
11.8
Thailand
1991 Percentage…
Spain's current real GDP (YO) is €326 billion, and grows at a constant rate of 1.1%. Portugal's current real
GDP is smaller (€55 billion), but they are experiencing a constant 4.8% growth rate.
Part a) Calculate the real GDP for both countries 30 years, 50 years and 70 years from now. Allow the
calculator to carry decimals in your intermediate calculations, but round GDP to the nearest billion Euro.
Use these rounded values throughout the rest of the problem.
Part b) Calculate the percentage difference in real GDP between the two countries for each 20-year
interval. Report your answer in percentage form, rounded to the nearest integer.
Part c) Suppose Portugal's goal is to catch up to Spain's GDP in 25 years. What growth rate must they
sustain each year if they are to accomplish their goal? Express your answer as a percentage, rounded to
one decimal place.
Chapter 21 Solutions
EBK FOUNDATIONS OF ECONOMICS
Ch. 21.A - Prob. 1SPPCh. 21.A - Prob. 2SPPCh. 21.A - Prob. 3SPPCh. 21.A - Prob. 4SPPCh. 21.A - Prob. 5SPPCh. 21.A - Prob. 6SPPCh. 21.A - Prob. 7SPPCh. 21.A - Prob. 1IAPCh. 21.A - Prob. 2IAPCh. 21.A - Prob. 3IAP
Ch. 21.A - Prob. 4IAPCh. 21.A - Prob. 5IAPCh. 21.A - Prob. 6IAPCh. 21.A - Prob. 7IAPCh. 21 - Prob. 1SPPACh. 21 - Prob. 2SPPACh. 21 - Prob. 3SPPACh. 21 - Prob. 4SPPACh. 21 - Prob. 5SPPACh. 21 - Prob. 6SPPACh. 21 - Prob. 7SPPACh. 21 - Prob. 8SPPACh. 21 - Prob. 9SPPACh. 21 - Prob. 10SPPACh. 21 - Prob. 1IAPACh. 21 - Prob. 2IAPACh. 21 - Prob. 3IAPACh. 21 - Prob. 4IAPACh. 21 - Prob. 5IAPACh. 21 - Prob. 6IAPACh. 21 - Prob. 7IAPACh. 21 - Prob. 8IAPACh. 21 - Prob. 9IAPACh. 21 - Prob. 10IAPACh. 21 - Prob. 11IAPACh. 21 - Prob. 12IAPACh. 21 - Prob. 1MCQCh. 21 - Prob. 2MCQCh. 21 - Prob. 3MCQCh. 21 - Prob. 4MCQCh. 21 - Prob. 5MCQCh. 21 - Prob. 6MCQCh. 21 - Prob. 7MCQ
Knowledge Booster
Similar questions
- In 1950 GDP in the United Kingdom (measured in year 2005 pounds) was £317 billion. In 2000 it was £1,108 billion. Calculate the growth rate of real GDP in the United Kingdom over this period. Now suppose that the United Kingdom grows at the same rate for the 50 years following 2000. What will the UK real GDP be in the year 2050?arrow_forwardYear nominal GDP (in billion) Real GDP and Real GDP per capita population (in million) GDP deflator 2000 9,951 88.72 2005 12,623 100 2010 14,499 110.99 2015 18,012 122.03 a. Which year is the base year? Justify your answer. b. Calculate the real GDP per capita growth from 2000 to 2015. Show your work! 282.296 296.115 309.733 322.583 real GDP real GDP per capitaarrow_forwardAn economy produces three products, bags, computers and shirts. The prices and quantities of these products in 2020 and 2021 are shown in the table below: 2020 2021 Price Price Quantity Quantity 300 $10 $12 330 Bags Computers $600 100 $650 110 Shirts $18 2,000 $20 2,200 2020 2021 Measure the nominal and real GDP for 2019 and 2020, using 2020 as the base year. Measure the nominal and real GDP growth rate in 2021. Which value is more accurate in measuring the growth rate of the economy? Explain. (b) The information on price and quantity of three products consumed by a typical household in the year 2020 and 2021 is given by the table below 2020 2021 Price Quantity Price 10 Quantity $5 $5.50 12 Fish Beef $10 5 $11 4 Train Ride $8 20 $9 22 Using 2020 as the base year, measure the CPI for 2021 and the inflation rate in 2021. Does this inflation rate correctly measure the cost of living changes for households in 2021? Explain.arrow_forward
- Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 5 bars and the price is Rs.400 per bar. In year 2, the quantity produced is 6 bars and the price is Rs.500 per bar. In year 3, the quantity produced is 7 bars and the price is Rs.600 per bar. Year 1 is the base year. What is the GDP deflator for year 3? What is the percentage growth rate of real GDP from year 2 to year 3?arrow_forwardThe following table gives some figures from forecasts of real GDP (in 2005 dollars) and population completed in mid-2014. Value Real GDP 2018 $18,121.00 billion Real GDP 2019 $19,027.05 billion Population 2018 Population 2019 329.00 million 332.29 million The real GDP growth rate between 2018 and 2019 will be 5 %. (Round your response to two decimal places.) The population growth rate between 2018 and 2019 will be 1 %. (Round your response to two decimal places.) Per-capita GDP in 2018 is projected to be $. (Round your response to two decimal places.) Per-capita GDP in 2019 is projected to be $ (Round your response to two decimal places.)arrow_forwardAs per the World Bank, Philippine Real GDP (constant 2015 prices) was at around 396,220,000,000 USD in 2019. Meanwhile the GDP deflator for 2015-2019 is given as follows: Year Deflator 2015 100.00 2016 101.29 2017 103.66 2018 * 107.53 2019 108.28 Given this information, compute for the Nominal GDP for the Philippines in 2019.arrow_forward
- Suppose the nominal GDP of country X in 2013 was equal to 10000. The deflator index in 2014 was 107% (relative to the previous year). The volume index in 2014 was 103% (compared to the previous year). What is the nominal GDP of country X in 2014?arrow_forwardCalculate the real GDP for 2011, 2012 and 2013. Also the growth rate in real GDP for 2012 and 2013.arrow_forwardTable 23-3 The following table reports nominal and real GDP for the U.S. from 1929 to 1932. Year 1929 1930 1931 1932 Nominal GDP (Billions of dollars) 103.6 91.2 76.5 58.7 Real GDP (Billions of dollars) 977 892.8 834.9 725.8 Refer to Table 23-3. What was the growth rate of real GDP for 1930? -9.43%. Nominal GDP is a better gauge of economic well-being than real GDP. -9.43%. Real GDP is a better gauge of economic well-being than nominal GDP. -8.62%. Nominal GDP is a better gauge of economic well-being than real GDP. -8.62%. Real GDP is a better gauge of economic well-being than nominal GDP.arrow_forward
- a) Nominal GDP 2013, 2014 b) Real GDP 2013, 2014 c) GDP growth rate d) Deflator 2014arrow_forwardUnits Current Reales (million) Million 2000= 100 Reales Reales, 2000 2000 Nominal GDP Population GDP deflator Nominal GDPpc Real GDPpc Source: World Bank, World Development Indicators (online) 1,199,092 174.5 100.0 6,840 6,840 2017 How long would it take for real GDPpc to double? 6,559,940 209.3 369.4 28,299 7,661 What does this 0.9% growth in real GDPpc mean in terms long-term standard of living in Brazil? Average annual growth (%) 14.0 1.4 10.6 11.5 0.9 Iarrow_forwardWhat are THREE public policies that can facilitate economic growth in a Caribbean economy. Suppose production and prices of food and clothing (the only two goods produced in this economy) in 2006 and 2007 are as follows: (base year = 2006) Year Quantity of Food Price of Food Quantity of Clothing Price of Clothing 2006 20 $15 15 $5 2007 60 $18 30 $6 Calculate the nominal and real GDP in 2006 and 2007, the GDP deflator and the growth rate in real output.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education