Consider the following data on the GDP of Z-product: a) What was real GDP in 2012 measured in 2008 price? b) What was the growth rate of real GDP between 2011 and 2012? c) Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP? Explain.
Consider the following data on the GDP of Z-product: a) What was real GDP in 2012 measured in 2008 price? b) What was the growth rate of real GDP between 2011 and 2012? c) Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP? Explain.
Chapter5: Gross Domestic Product
Section: Chapter Questions
Problem 4SQ
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Question
Consider the following data on the
a) What was real GDP in 2012 measured in 2008 price?
b) What was the growth rate of real GDP between 2011 and 2012?
c) Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP? Explain.
Transcribed Image Text:quantity
GDP deflator
year price of Z
Nominal GDP
of Z
|(base year 2008)
2011
$23.00
155,000
115
2012
$23.80
157,500
119
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