Ch.6 Measure of Gross Domestic Product, Nominal GDP, Real GDP, GDP per Capita, and Business Cycle

This problem is matching learning objectives of chapter 6 sections 6.1, 6.3, 6.4., & 6.5.

1. GDP Measured by Components of Aggregate Demand(Refer to Section 6.1)

Item Billions of dollars

Consumption expenditure 7,500

Investment 1,300

Government expenditure on good and services 1,400

Net exports of goods and services -200

a. (2 points) Based on the data in the table above, what is the amount of GDP equal to?

2. Calculate Nominal GDP, Real GDP, Real GDP Growth Rate (Refer to Instructor Note PPT) Hint: This problem is not given the GDP Deflator, so it can't use GDP Deflator to find real GDP. Read the Instructor PPT note to find real GDP.

GDP data for 2009 Item Quantity Price Fun 40 $2 Food 60 $3 GDP data for 2010 Item Quantity Price Fun 35 $3 Food 65 $2