Question

Consider an economy where only three types of vehicles are produced and sold, namely: Tesla, GM and BMW. The following table shows the quantity sold (in millions) and the price per unit of each vehicle: 2011 2012 40 $4 200 2013 50 $4.50 210 $4 13 $7 2014 Tesla GM BMW Quantity produced and sold 40 Price per unit Quantity produced and sold200 Price per unit Quantity produced and sold12 Price per unit $3 $2$3.75 S4 65 $5 300 2015 70 $5 375 $2.50$2.50 17 $7 20 $7 $6 Copy and paste the above table in excel to conduct the computations for each question Present your results clearly in a table as they apply to each question

Answer 1

	2011		2012		2013		2014		2015		Real GDP
	Price ($ )	Quantity	Price ($ )	Quantity	Price ($ )	Quantity	Price ($ )	Quantity	Price ($ )	Quantity	Expenditure in 2011 (in millions) $	Expenditure in 2012 (in millions) $	Expenditure in 2013 (in millions) $	Expenditure in 2014 (in millions) $	Expenditure in 2015 (in millions) $
Tesla	3.00	40	4.00	40	4.50	50.00	5.00	65.00	5.00	70	160	160	200.00	260	280
GM	2.00	200	3.75	200	4.00	210	2.50	300	2.50	375	750	750	787.50	1125	1406.25
BMW	4.00	12	6.00	12	7.00	13	7.00	17	7.00	20	72	72	78.00	102	120
Real GDP											982	982	1065.50	1487	1806.25
GDP deflator = (Nominal GDP/Real GDP)100
Nominal GDP: the value of final goods and services at current prices
Real GDP: The value of final goods and services at base year prices
Base year is 2012, Real GDP in 2010 is same a nominal GDP.
Real GDP growth rate 2011 to 2012				((982-982)/982))*100		(0/982)=0%
Real GDP growth rate 2012 to 2013				((1065.50-982)/982))*100		(83.5/982)*100		8.50%
Real GDP growth rate 2013 to 2014				((1487-1065.50)/1065.50))*100			(421.50/1065.50)100		39.56%
Real GDP growth rate 2014 to 2015				((1806.25-1487)/1487))*100			(319.25/1487)100=		21.47%
GDP deflator = (Nominal GDP/Real GDP)100
Year	Nominal GDP ($) (in millions)	Real GDP (Base year 2012 ($)) (in millions)	GDP Deflator
2011	568	982	57.84%
2012	982	982	100.00%
2013	1156	1065.5	108.49%
2014	1194	1487	80.30%
2015	1427.5	1806.25	79.03%
GDP deflator measures the inflation.
Percentage change in 2011- 2012			(57.84-100)*100		-42.16%
Percentage change in 2012- 2013				(108.4-100)*100		8.40%
Percentage change in 2013- 2014				(80.30-100)*100		-19.70%
Percentage change in 2014- 2015				(79.03-100)*100		-20.97%