Question

Suppose that nominal GDP was $900000.00 in 2005 in Orange Country California. In 2015, nominal GDP was $11750000.00 in Orange Country

Part 1 (1 point) See Hint Suppose that nominal GDP was $9000000.00 in 2005 in Orange County California. In 2015, nominal GDP was $11750000.00 in Orange County California. The price level rose 1.50% between 2005 and 2015, and population growth was 4.50%. Calculate the following figures for Orange County California between 2005 and 2015. Give all answers to two decimals, a. Nominal GDP growth was See Hint Part 2 (1 point) b. Economic growth was

Answer 1

a. Nominal GDP growth = ((11750000/9000000)^(1/10)-1)*100 = 2.7 percent

b. Economic Growth =
Real GDP of 2005 = 9000000
Real GDP of 2015 = Nominal GDP of 2015/CPI of 2015 = 11750000/(116.05/100)= 10124946
Economic growth =(((10124946/9000000)^(1/10))-1)*100=1.18%
CPI of 2015
Annual price level growth = ((CPI of 2015/100)^(1/10)-1)*100 = 1.5%
solving for CPI is excel we get CPI of 2015 = 116.06

c. Inflation was = ((CPI of 2015/CPI of 2005)^(1/10)-1)*100 = ((116.05/100)^(1/10)-1)*100 = 1.5%

d. Real GDP growth
= ((Real GDP of 2015
/ Real GDP of 2005)^(1/10)-1)*100
= ((10124946/9000000)^(1/10)-1)*100
= 1.18 percent

e. Per capita GDP growth = Nominal GDP Growth rate/Population growth rate =(2.7/4.5)=0.6 percent

f. Per capita Real GDP growth = Real GDP Growth rate/Population growth rate =1.18/4.5=0.26 percent