Question

Question 2 The following table shows quarterly data of U.S. nominal and real GDP in 2018. Use the information to calculate items (a), (b), and (c): 2018 01 20,04120,411.9 02 | 03 20,658.2 18,511.6 18,665 Nominal GDP (billions of dollars Real GDP (billions of 2012 dollars)18,3241 a. (2 points) Calculate the growth rate of nominal GDP in second and third quarters of b. (2 points) Calculate the growth rate of real GDP in second and third quarters of 2018. 2018. c. (1 points) The American policy makers would like to know how fast the US economy grew in second and third quarters of 2018. Which numbers of GDP growth would you provide to them and why?

Answer 1

Nominal GDP in first quarter = $ 20, 041 bn Nominal GDP in second quarter = $ 20,411.9 bn Increase in Nominal GDP = $ (20,411.9 - $ 20,041)bn = $ 370.9 bn Growth rate in Q_2 = Increase/GDp in Q_1 times 100 = 370.9/20,041 times 100 = 1.85 % Nominal GDP in Q_2 = 20, 411.9 bn dollar Nominal GDP in Q_3 = 20, 658.2 bn dollar Increase = $ (20,658.2 - 20,411.9) bn = $ 246.3 bn Growth rate in Q_3 = Increase/GDP in Q_2 times 100 = 246.3/20,411.9 times 100 = 1.206 % \r\n Real GDP in Q_1 = 18,324 bn dollars Real GDP in Q_2 = 78,511.6 bn dollars Increase = (18,511.6 - 18,324) bn dollars = 187.6 bn dollars Growth rate in Q_2 = Increase/GDP in Q_1 times 100 = 187.6/18,324 times 100 = 1.02 % Real GDP inQ_2 = 18,511.6 bn dollars Real GDP in Q_3 = 18,665 bn dollars Increase = (18,665 - 18,511.6) bn dollars