Question
In fact, rather than real GDP growth being too fast over last 15 years , there has been a slowdown in growth. From a growth
In fact, rather than real GDP growth being "too fast" over last 15 years , there has been a slowdown in growth. From a growth accounting perspective, much of the slowdown in GDP growth has been due to a slowdown in productivity growth. Specifically, the average quarterly productivity growth was 0.712% between 1995 and 2004 and only 0.317% from 2005-2015. Nominal GDP in 2015 was $18.037 trillion. Assuming that the productivity growth rate had not fallen and input growth had remained the same, how much larger would nominal GDP have been in 2015?
(You can use either continuous or discrete growth rates here)
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