Question
Year Nominal GDP Real Potential GDP(2005) GDP deflator Base year 2005 2013 9.269 7730 113 2014 9.873 10145 118 Calculate real GDP in 2013
| Year | Nominal GDP | Real Potential GDP(2005) | GDP deflator – Base year 2005 |
| 2013 | 9.269 | 7730 | 113 |
| 2014 | 9.873 | 10145 | 118 |
Calculate real GDP in 2013 and 2014 respectfully
Calculate the growth in % of nominal GDP between 2013 and 2014
Calculate the growth in % of real GDP between 2013 and 2014
Explain the difference between the growth of nominal GDP and the growth of real GDP
Cal the output gap in 2013 and 2014 (in %) and state whether the output gap was recessionary of inflationary
Step by Step Solution
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Step: 1
To calculate the real GDP in 2013 and 2014 we need to use the GDP deflator and the nominal GDP value...
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Economics
Authors: R. Glenn Hubbard
6th edition
978-0134797731, 134797736, 978-0134106243
