Question

In: Economics

Consider the following data for the United​ States: Date Nominal GDP ​(billions of dollars per​ year)...

Consider the following data for the United​ States:

Date

Nominal GDP

​(billions of dollars per​ year)

Price Index

​(base year​ 2010)

Real GDP

​(billions of dollars per​ year,

in constant 2009​ dollars)

2015

18,238

100.00

17,432

2016

18,745

101.05

17,731

2017

19,543

102.95

18,144

​*Real-time data provided by Federal Reserve Economic Data​ (FRED), Federal Reserve Bank of Saint Louis.

Assuming the base year is now 2017​, complete the following ​(enter your responses rounded to one decimal ​place)​:

a. Recalculate the price index for years 2015​, 2016 and 2017.

b. Recalculate the real GDP for the years 2015​, 2016​, 2017.

Consider the following data for the United​ States:

Date

Price Index

(base year 2017)

Real GDP

​(billions of dollars per​ year,

in constant 2017​ dollars)

2015

2016

2017

Solutions

Expert Solution

BASE YEAR is 2017

(A) PRICE INDEX CALCULATION FORMULAE-

  

OR   

DATE

NOMINAL GDP (billion of dollar per year)

REAL GDP (billion of dollar per year)

PRICE INDEX (BASE YEAR 2017)

2015

18,238

17,432

  ×100= 101

2016

18,745

17,731

  

2017

19,543

18,144

(B) REAL GDP CALCULATION FORMULAE-

   OR   

YEAR

NOMINAL GDP

PRICE INDEX (base year 2017)

REAL GDP

2015

18,238

101

2016

18,745

104

2017

19,543

108

×100= 18096


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