Question

2002 85.0 92.0 Refer to the data below (all values are in billions): Nominal Year GDP Deflator GDP (in Billions (Price Index, of Dollars) 2009 = 100) 2000 9,817 81.9 2001 10,128 83.8 10,469 2003 10,960 86.7 2004 11,685 89.1 2005 12,422 2006 13,178 94.8 2007 13,808 97.3 2008 14,291 99.2 2009 13,939 100.0 2010 14,524 101.2 15,518 103.3 2012 16,163 105.2 2013 16,768 106.7 2014 17,393 108.8 2015 18,037 110.0 2016 18,569 111.4 2011

Answer 1

GDP Deflator = Nominal GDP / Real GDP

Year	Nominal GDP	GDP Deflator	Real GDP
2000	9817	81.9	11986.57
2001	10128	83.8	12085.92
2002	10469	85	12316.47
2003	10960	86.7	12641.29
2004	11685	89.1	13114.48
2005	12422	92	13502.17
2006	13178	94.8	13900.84
2007	13808	97.3	14191.16
2008	14291	99.2	14406.25
2009	13939	100	13939
2010	14524	101.2	14351.78
2011	15518	103.3	15022.27
2012	16163	105.2	15364.07
2013	16768	106.7	15715.09
2014	17393	108.8	15986.21
2015	18037	110	16397.27
2016	18569	111.4	16668.76

a) Real GDP for 2013 using 2002 prices:

Real GDP in 2013 in 2013 price = 15,715.09

Real GDP in 2013 in 2002 price = 15,715.09 * 0.85 = 13,360.95

b) Real GDP in 2002 = 12316.47

Real GDP in 2013 = 15,715.09

Real GDP between 2002 - 2013 changes by = 15,715.09 - 12,316.47 = 3,398.62

c) Nominal GDP in 2002 = 12316.47

Nominal GDP in 2013 = 15,715.09

Nominal GDP change by = 15,715.09 - 12,316.47= 6,299