B. Assume a hypothetical Economy. The annual GNP Figures in the table below are given along with the price index in the respective years. Year Nominal Price Index Real GNP (in Growth Rate GNP (in Billion Billion (in Percent) Inflation Rate % Pesos) Pesos) 2000 230 85 2001 260 88 2002 287 90 2003 363 94 2004 400 98 2005 420 100 2006 446 107 2007 460 111 2008 470 115 2009 490 126 2010 515 150 1. What is used as the base year? 2. Determine the Real GNP for each year from 2000 to 2010. (Fill in the blanks in designated column in the table above) 3. Compute for the annual growth rate of the economy from year 2001 to 2010. (Fill in the blanks in corresponding column in the table above.) 4. Derive the annual inflation rate from year 2001 to 2010. Write the answers in the last column of the table above.
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To determine the base year, we need to find the year with a price index of 100. Looking at the table, we can see that the price index is 100 in the year 2005. Therefore, the base year is 2005. Show more…
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The accompanying table shows data on nominal GDP (in billions of dollars), real GDP (in billions of dollars) using 2000 as the base year, and population (in thousands) of the U.S. in $1960,1970,1980,1990,2000,$ and $2004,$ years in which the U.S. price level consistently rose. a. Why is real GDP greater than nominal GDP for all years before 2000 and lower for 2004 ? Does nominal GDP have to equal real GDP in $2000 ?$ b. Calculate the percent change in real GDP from 1960 to 1970,1970 to 1980,1980 to $1990,$ and 1990 to 2000 Which period had the highest growth rate? c. Calculate real GDP per capita for each of the years in the table. d. Calculate the percent change in real GDP per capita from 1960 to 1970,1970 to 1980,1980 to $1990,$ and 1990 to $2000 .$ Which period had the highest growth rate? e. How do the percent change in real GDP and the percent change in real GDP per capita compare? Which is larger? Do we expect them to have this relationship?
The accompanying table shows data on nominal GDP (in billions of dollars), real GDP (in billions of 2005 dollars), and population (in thousands) of the United States in $1960,1970,1980,1990,2000,$ and $2010 .$ The U.S. price level rose consistently over the period $1960-2010$. a. Why is real GDP greater than nominal GDP for all years until 2000 and lower for $2010 ?$ b. Calculate the percent change in real GDP from 1960 to 1970,1970 to 1980,1980 to 1990,1990 to 2000 , and 2000 to $2010 .$ Which period had the highest growth rate? c. Calculate real GDP per capita for each of the years in the table. d. Calculate the percent change in real GDP per eapita from 1960 to 1970,1970 to 1980,1980 to 1990,1990 to 2000 , and 2000 to $2010 .$ Which period had the highest growth rate? -. How do the percent change in real GDP and the percent change in real GDP per capita compare? Which is larger? Do we expect them to have this relationship?
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