Question

Telsa GM BMW Yearly total Valuel Price(S) Quatityi Price(S) Quatity million Yearly total Valuel Yearly total aue GDP(in Nominal Price(S) Quatity in million million million 20113 2012 4 2013 4.50 20145 2015 5 120 160 225 325 2.50300 750 350 2.50 200 400 3.75200 750 210 840 12 12 13 17 20 568 982 1156 1194 4 50 65 70 48 72 91 119 140 1427.50 4 375 937.50 NGDP Growth rate from 2011 to 2012-[(982-568) / 568] * 100-72.8996 NGDP Growth rate from 2012 to 2013-[(1155-982) / 982] * 100-17.72% NGDP Growth rate from 2013 to 2014-[(1194-1156) / 1156] * 100-3.29% NGDP Growth rate from 2014 to 2015-[(142750-1194) / 1194] * 100-19.56%

Answer 1

We have the following information

Year	Tesla			GM			BMW			Nominal GDP ($)
	Q	P ($)	V ($)	Q	P ($)	V ($)	Q	P ($)	V ($)
2011	40	3.0	120.0	200	2.0	400.0	12	4.0	48.0	568.0
2012	40	4.0	160.0	200	3.8	750.0	12	6.0	72.0	982.0
2013	50	4.5	225.0	210	4.0	840.0	13	7.0	91.0	1156.0
2014	65	5.0	325.0	300	2.5	750.0	17	7.0	119.0	1194.0
2015	70	5.0	350.0	375	2.5	937.5	20	7.0	140.0	1427.5

In the above Q is Quantity P is price and V is the total value of the output. The Nominal GDP is arrived at by adding the Value of Output for the three car manufacturers.

Year	Nominal GDP ($)	YoY Growth
2011	568.00	--
2012	982.00	72.9%
2013	1156.00	17.7%
2014	1194.00	3.3%
2015	1427.50	19.6%

To check whether the growth rate in the nominal GDP for each year is due more to the increase in the physical volume of output or the increase in prices we shall look at the compound annual growth rate (CAGR) for the three car manufacturers.

Year	Tesla
	Quantity	Price ($)	Value of Output ($)
2011	40	3.0	120.0
2012	40	4.0	160.0
2013	50	4.5	225.0
2014	65	5.0	325.0
2015	70	5.0	350.0
CAGR	17.4%	13.3%	33.0%

Year	GM
	Quantity	Price ($)	Value of Output ($)
2011	200	2.0	400.0
2012	200	3.8	750.0
2013	210	4.0	840.0
2014	300	2.5	750.0
2015	375	2.5	937.5
CAGR	18.1%	0.4%	18.6%

Year	BMW
	Quantity	Price ($)	Value of Output ($)
2011	12	4.0	48.0
2012	12	6.0	72.0
2013	13	7.0	91.0
2014	17	7.0	119.0
2015	20	7.0	140.0
CAGR	14.7%	13.6%	30.3%

So, we can conclude that the growth rate in the nominal GDP for each year is due more to the increase in the physical volume of output.