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Say the base year is 2008. To calculate the growth rate of real GDP between 2008 and 2009, for example, the BEA calculates real GDP
Say the base year is 2008. To calculate the growth rate of real GDP between 2008 and 2009, for example, the BEA calculates real GDP for 2008 using 2008 as the base, and then real GDP for 2008 using 2009 as the base. Then, the bure calculates real GDP for 2009 using 2009 as the base, and real GDP for 2009 using 2008 as the base. For each base, the growth rate is then calculated as: 2009 GDP(2ooa Base) ' 2003 GDP(2008 Base) d 2009 GDP(2009 Base) ' 203 GDP(2009 Base) 2003 GDP(2008 Base) 2008 GDPlL'G'fJQ Basel So, they end up with two different growth rates, which are then averaged. Given this averaged growth rate, and the level c GDP in 2008 at 2008 prices, the bureau then calculates real GDP for 2009 as one plus the average growth rate previously calculated, times 2008 output in 2008 dollars. The growth rate between 2009 and 2010 is then calculated similany. Suppose that laptops, economics textbooks, and energy drinks are the only three goods produced in the United States. Tl following table gives the quantity of each produced (in millions) and their price in the years from 2010 to 2012: Laptops Textbooks Energy Drinks Price Quantity Price Quantity Price Quantity 2010 $1,400 7 $180 6 $2 25 2011 $1,100 9 $190 8 $4 30 2012 $900 9 $210 9 $4 35 Complete the following table by calculating nominal GDP and real GDP (using 2010 as the base year) for each year. (Ente your responses as integers.) Real GDP(2010 Nominal GDP Base) 2010 $- $ 10930 2011 $11540 $14100 2012 $ 10130 $ 14290 Using the chain-weighted method outlined above, real GDP for 2011 is $ 14104 . (Round your response to the nearest dollar.) Using the chain-weighted method again, real GDP for 2012 is $|:|. (Round your response to the nearest dollar.)
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