Extra Credit Chapter 6: GDP 1. Use the following table to Year Nominal GDP |Real GDP 2002 $10,470 $10,049 2003 10,961 10,301 2004 11.713 10,704 2005 12,456 1,049 2006 13.247 11,415 a. Calculate the GDP deflator for each year ( values are in billions of dollars). b. Find inflation rate for the year 2006? 2. Consider the following data on US GDP. Year Nominal GDP (in billions $) GDP deflator (base year 1996) 2000 9873 118 1999 9269 113 a. What was the growth rate of nominal GDP between 1999 and 2000? b. What was the growth rate of the GDP deflator between 1999 and 2000? c. What was real GDP in 1999 measured in 1996 prices? What was the growth rate of real GDP between 1999 and 2000? 3. Suppose that in 1984 the total output in a single-good economy was 7,000 buckets of chicken. Also suppose that in 1984 each bucket of chicken was priced at $10. Finally, assume that in 2000 the price per bucket of chicken was $16 and that 22,000 buckets were purchased. a. Determine Nominal GDP for each year b. Determine Real GDP for each year c. Determine the GDP price index for each year, using 2000 as the base year. d. By what percentage did the price level, as measured by this index, rise between 1984 and 2000? Note: Answers a-b by filling out the table below Year Qt Price Nominal GDP |Real GDP |Price Index Inflation 1984 2000 (base) Chapter 11 1. Use the data in the table below to compute economic growth rates for the United States for 2009, and 2010. Note that all data are from the end of the year specified Date Nominal GDP (billions of USD) |GDP Deflator| Population Growth Rate 2007 $14,061.8 106.30 1.01% 2008 $14,369.1 108.62 0.93% 2009 $14,119.0 109.61 0.87% 2010 $14,660.4 110.66 0.90% 2. The economy of China has boomed since the late 1970s, having periods during which real GDP per capita has grown at rates of 9 percent per year or more. At a 9 percent growth rate in real GDP per capita, how many years will it take to double