In: Economics
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 1.00% between 2005 and
2015, and population growth was 3.75%. Calculate the following
figures for Orange County California between 2005 and 2015. Give
all answers to two decimals.
a. Nominal GDP growth was %.
Part 2 (1 point)
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b. Economic growth was %.
Part 3 (1 point)
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c. Inflation was %.
Part 4 (1 point)
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d. Real GDP growth was %.
Part 5 (1 point)
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e. Per capita GDP growth was %.
Part 6 (1 point)
f. Real per capita GDP growth was %.
Answer:-
(A). Nominal GDP growth rate is the % change in nominal GDP from 2005 to 2015
Nominal GDP growth = (11750000 – 9000000) / 9000000 * 100
= 30.56%.
(B). Economic Growth = Nominal GDP growth rate- Inflation- population growth rate
= 30.56% - 1% - 3.75%
= 25.81%
(C). Inflation is the situation of increase in the general price level of the goods and services produced by the economy.
Here the price level rise by 1% so the inflation become 1%
(D). Real GDP Growth = Nominal GDP growth – Inflation
= 30.56% - 1%
= 29.56%
(E). Per Capita GDP Growth = Nominal GDP growth – Population Growth
= 30.56% - 3.75%
= 26.81%
(F) Real per capita GDP Growth = Real GDP growth - Population Growth
= 29.56% - 3.75%
= 25.81%