What would you need to determine the GDP per capita for a given country for a given year? The total value of all goods and services produced by a national economy within a given period using all factors of production The total value of all goods and services a national economy produces during one year using its domestic factors of production and the changes in its currency values and price changes The total value of all goods and services a national economy produces during that year using its domestic factors of production, and its population The total value of all goods and services a national economy produces during one year using its domestic factors of production
Added by Diana B.
Close
Step 1
Step 1: GDP per capita is calculated by dividing the GDP of a country by its population. Show more…
Show all steps
Your feedback will help us improve your experience
Carson Merrill and 87 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Economists define the gross domestic product (GDP) as the total market value of a nation's goods and services produced (within the borders of the nation) over a specified period of time. The GDP is one of the key measures of a nation's economic health. Table A gives the annual GDP for the United States for the period $1950-1990,$ at 10 -year intervals. In Figures $A$ and $B$ we show scatter plots for the data along with regression functions that model the data. Figure A uses a linear model, Figure B an exponential model. In each case, the years are on the horizontal axis, with $t=0$ corresponding to $1900 .$ In this exercise you'll use a graphing utility to obtain the specific equations for these models and for two other models as well. You'll also compare projections using the various models. TABLE AND GRAPH CANT COPY (a) Use a graphing utility to create your own scatter plot of the data in Table A. Then, use the regression or trend line options of the graphing utility to obtain the specific equations for the linear model in Figure $\mathbf{A}$ and the exponential model in Figure B. (For the expo- nential model, you can report your answer in either one of the two forms indicated in the caption for Figure B, depending on what your graphing utility provides.) For comparison, graph both models in the same viewing rectangle. (b) Use the regression or trend line options of the graphing utility to obtain the equation for a quadratic model $y=a t^{2}+b t+c .$ Show the graph of the quadratic model with the scatter plot. Now repeat this process for a power model $y=a t^{b}$ (c) Use the functions that you determined in parts (a) and (b) to complete Table B, showing what each model projects for the gross domestic product in the indicated year. (Round each projection to one decimal place.) Then, in each row, circle the projection that is closest to the actual value given at the end of that row. Finally, compute the percentage error for each projection that you circled.
Exponential and Logarithmic Functions
Exponential Growth and Decay
Gross Domestic Product (GDP) is the market value of all final goods and services produced within a country during a given time period. The following fifthdegree polynomial approximates the per capita GDP (the average GDP per person) for the United States for the years 1933 to 1950 $g(x)=0.294 x^{5}-12.2 x^{4}+169 x^{3}-912 x^{2}+2025 x+4508$ where $g(x)$ is in 1996 dollars and $x$ is the number of ycars since $1933 .$ Note that when dollar amounts are measured over time, they are converted to the dollar value for a specific base year. In this case, the base ycar is $1996 .$ (Source: Economic History Scrvices) (a) Use this model to calculate the per capita GDP (in 1996 dollars) for the years $1934,1942,$ and 1949 What do you observe? (b) Explain why this model may not be suitable for predicting the per capita GDP for the year 20024 (c) Use your graphing utility to find the year(s), during the period $1933-1950$, when the GDP reached a local maximum.
Polynomial and Rational Functions
More on Graphs of Polynomial Functions and Models
Gross domestic product (GDP), unemployment, inflation, and economic growth are key measures of a country's economic performance. The following statistics are from the country of Pattiland in 2016; dollar values are measured in 2016 dollars. Consumption Investment Exports Imports Government Spending Taxes $90 $65 $25 $50 $50 $20 Population Labor Force Employed 50 25 20 GDP deflator 2016 90 a) Calculate each of the following and show your work: (i) Nominal GDP (ii) Real GDP (iii) Real GDP per capita b) Debbie is a citizen of the country of Wayland and owns a computer software firm in Pattiland. Is the output produced by Debbie's computer software firm included in Pattiland's nominal GDP calculated in part (a)? Explain. c) The GDP deflator for Pattiland in 2015 was 110. In 2016, was Pattiland experiencing inflation or deflation, or is there insufficient information to determine Pattiland's economic condition? Explain. d) Calculate the unemployment rate in Pattiland.
Mauya M.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD