Is nominal GDP measured in terms of quantity or in terms of dollars? If dollars, the...

Is nominal GDP measured in terms of quantity or in terms of dollars? If dollars, the value of the dollar from what period? Is real GDP measured in terms of quantity or in terms of dollars? If dollars, the value of the dollar from what period?

Expert Solution

Nominal GDP = price of a good in the current year * quantity of the goods in the current year

Real GDP = Quantity of the good in the current year * price of the good in the base year

Answer: NGDP is measured in terms of dollars. The value of the dollars is from current period.

RGDP is measured in terms of dollars. The value of the dollar is from the base period.

Rahul Sunny answered 2 years ago

Consider the following data on U.S. GDP: Year Nominal GDP GDP Deflator (Billions of dollars) (Base...

Consider the following data on U.S. GDP: Year Nominal GDP GDP Deflator (Billions of dollars) (Base year 2009) 2017 19,485 107.95 1997 8,578 74.45 The growth rate of nominal GDP between 1997 and 2017 was _______, and the growth rate of the GDP deflator between 1997 and 2017 was ______. (Hint: The growth rate of a variable XX over an NN-year period is calculated as 100×((XfinalXinitial)(1N)−1)100×XfinalXinitial1N−1) Measured in 2009 prices, real GDP was ______billion in 1997 and ______billion in 2017....

What is real GDP? How is it measured? Find out the U.S. GDP (in current dollars)...

What is real GDP? How is it measured? Find out the U.S. GDP (in current dollars) and U.S. Real GDP for 1979-2018 and plot them into the same graph. What is the di§erence between the growth rate of nominal GDP, growth rate of real GDP and growth rate of realGDP per capita? What are the determinants of the last one? Find out the growth rate of U.S. Real GDP per capita for 1979-2018 and plot them into a graph

Country A is a developing country. The nominal GDP in Country A (expressed in terms of...

Country A is a developing country. The nominal GDP in Country A (expressed in terms of Country A currency) was 100 in 2018 and 200 in 2019. Does this means that the production in Country A doubles in 2019? Give 2 reasons and explain why or why not..

GDP A. is neither a stock or flow measure since it is measured in dollars. B....

GDP A. is neither a stock or flow measure since it is measured in dollars. B. is a stock measure since it represents the total market value. C. could be either a stock or flow measure depending upon whether it is measured in dollars or units of production. D. is a flow measure since it represents the value of a flow of production over a year's period.

In 2018, the US nominal GDP was estimated to be $20.5 trillion dollars while the real...

In 2018, the US nominal GDP was estimated to be $20.5 trillion dollars while the real GDP was estimated to be $18.64 trillion. Why is there a difference? Additionally, explain if GDP is a perfect measure of well-being.

Year Quantity Price Nominal GDP Real GDP 2012$ Real GDP 2015$ 2012 1000.00 $10 $10,000 $10,000...

Year Quantity Price Nominal GDP Real GDP 2012$ Real GDP 2015$ 2012 1000.00 $10 $10,000 $10,000 $16,000 2013 1100.00 $11 $12,100 $11,000 $17,600 2014 1000.00 $13 $13,000 $10,000 $16,000 2015 1200.00 $16 $19,200 $12,000 $19,200 e. Calculate GDP deflator (using 2012$) and inflation rates for 2013, 2014, and 2015. f. Calculate GDP deflator (using 2015$) and inflation rates for 2013, 2014, and 2015.

4- Measured in current US dollars China’s GDP is smaller than that of the US; but...

4- Measured in current US dollars China’s GDP is smaller than that of the US; but the total investment expenditures in China, measured in US dollars, is much higher in China. Why is that?

Assume that in 2018 the nominal GDP was $8,000 billion and in 2019 the nominal GDP...

Assume that in 2018 the nominal GDP was $8,000 billion and in 2019 the nominal GDP was $8,500 billion. Based on this information can we make any meaningful comparison of the economy’s performance? Would the value of automobile production in 2019 in the U.S. by a Korean auto company be counted in the U.S.’s GDP for the Year 2019? Briefly explain. If you purchased $10,000 of Google stock in 2019, would that purchase be included in GDP statistics for 2019?...

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...

Suppose that nominal GDP was $9000000.00 in 2005 in Montgomery County Maryland. In 2015, nominal GDP...

Suppose that nominal GDP was $9000000.00 in 2005 in Montgomery County Maryland. In 2015, nominal GDP was $11250000.00 in Montgomery County Maryland. The price level rose 1.50% between 2005 and 2015, and population growth was 3.25%. Calculate the following figures for Montgomery County Maryland between 2005 and 2015. Give all answers to two decimals. a. Nominal GDP growth was _____% b. Economic growth was ______% c. Inflation was ______% d. Real GDP growth was _______% e. Per capita GDP growth...

Question