Question

09 Study Problems ind answers on the McGrawHill online resouree- -t suso) ae op decimal place pue () sunnb sasuy un3 jo iunoo a og ae 6 e p on)T TABLE 4.9 910 STOZ 9St 07 77+ 00t Real GDP hillions 9591 91 Population (millions a) Calculate the GDP deflator 1 2015 L102 9102 b) Calculate real GDP per capita 2015 2017 9102 cCalculate the growth rate of real GDP per capita. 2 (LO 1) The labour force data for Eturia (in millions) are shown in Table 4.10 Intern TABLE 4.10 910Z )9 STOZ Population 12 12.5 uopendod ade-Suppaon Labour force 6 SRD 110.3 Unemployed 8O 108.2 601 (001 z00z) LD a) What are the (labour force) participation rates in each year? 2015 b) What are the unemployment rates in each year? 2015 2017: 9102 2016 2017: c) Calculate the annual inflation rate. 2016: d) Calculate the percentage increase in population. 2017: 9102 e) If the population continues to increase at this rate. how long will it take for the population to double? Number of years 3. (LO 3) The average nominal incomes earned in Eturia and the CPI are shown in Table 4.11. TABLE 4.11 S10z 9102 107 Nominal income (5) 009 62 121 000 8z 000 ZE CPI (2002 100) 9I

Answer 1

2015 420 2016 456 2017 500 Nominal GDP ($billions) Real GDP ($billions) population (milions), 400 422 447 1714 16 16 56 GDP Deflator = Nominal GDP x 100 - Real GDP GDP Deflator 2015 = 120 X 100 = 420 , 105 YDP Deflatori = 456 x 100 = 108'0569 422 a 10811 Counded to one decimal place) GDP Deflator 2012 500 x 100 = 111'8568 - Ñ 111.9 crounded to one decimal place ? Hence. The GDP Deflaton, 2015: 105 ; 2016: 1081 ; 2017 ; 111'9 b) Real GDP ($ Millions) - Real GDP ($ billions)x 1000 ... Real GDP C & millions 2015 2016 2017 Real GDPC 4 millions) 400,000 422,000 447,000 Population (mellions) 16 16.56 17'14 1. Real GDP per capela = Real GDP / Populations Real GDP per capita 2015 = $ 400,000/16 =$ 25,000 Real GDP per capita 2016 - $ 422,000/16:56. = $ 25.483'09 Real GDP per capita 2017 - $ 447,000/17:14 = $ 26,079:35 Hence. The real GDP Per Capita, (figures rounded to 2 decimal place) 2015. $25,000 ; 2016: $25483'09 ; 2017% $26,079135 - Growth rate of real GDP per capita = Change in Real GDP Per capita in 1 yr. ve Real GDP per capita of Real GDP per capita of the previous yr. ... Real GDP per capita 2016 - Real GDP Per Capitanos Real GDP per capita 2015 - X 100 Growth rate en 2016

Growth rate of real GDP per capita 2016 = 25483'09-25000 -X10 25000 483'09 250 = 1'93236 %. ~ 1.9% (rrounded to one decimal place). 26079'35 - 2548300 x 100%. Growth rate of real GDP per capita 2017 = 25483:09 596.26 x 100 % = ñ 25483.09 2'33982 0 2'3%. (rounded to one . decimal place) capitar, Hence, the growth rate of real GDP per 2016 ; 19% 2017 ; 23%.