close solutoin list

Consider the following data on U.S. GDP: Year Nominal GDP in billions of dollars) GDP Deflator (base year 2009) 2014 17,419 108.3 1994 7,309 73.8 a. What was the growth rate of nominal GDP between 1994 and 2014? ( Hint: The growth rate of a variable X over an N-year period is calculated as 100 × [(X final /X initial ) 1/N – 1].) b. What was the growth rate of the GDP deflator between 1994 and 2014? c. What was real GDP in 1994 measured in 2009 prices? d. What was real GDP in 2014 measured in 2009 prices? e. What was the growth rate of real GDP between 1994 and 2014? f. Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP? Explain.

BuyFind

Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781337091985
BuyFind

Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781337091985

Solutions

Chapter
Section
Chapter 5, Problem 7PA
Textbook Problem

Consider the following data on U.S. GDP:

Year Nominal GDP in billions of dollars) GDP Deflator (base year 2009)
2014 17,419 108.3
1994 7,309 73.8
  1. a. What was the growth rate of nominal GDP between 1994 and 2014? (Hint: The growth rate of a variable X over an N-year period is calculated as 100 × [(Xfinal/Xinitial)1/N – 1].)

    b. What was the growth rate of the GDP deflator between 1994 and 2014?

    c. What was real GDP in 1994 measured in 2009 prices?

    d. What was real GDP in 2014 measured in 2009 prices?

    e. What was the growth rate of real GDP between 1994 and 2014?

    f. Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP? Explain.

Expert Solution

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

See Solution

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Chapter 5 Solutions

Brief Principles of Macroeconomics (MindTap Course List)
Show all chapter solutions

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
How can report writers ensure that they present their topics objectively and credibly?

Essentials of Business Communication (MindTap Course List)

Give an example of each.

Foundations of Business (MindTap Course List)

What are the three steps in decision making?

Accounting Information Systems

What is the cause of an unfavorable volume variance?

Managerial Accounting: The Cornerstone of Business Decision-Making

List four items of information about each cash payment entered in the cash payments journal.

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

Give some examples that illustrate how (a) seasonal factors and (b) different growth rates might distort a comp...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)