Question

Suppose that nominal GDP was $9750000.00 in 2005 in Fairfax County Virginia. In 2015, nominal GDP was $11000000.00 in Fairfax County Virginia. The price level rose 1.00% between 2005 and 2015, and population growth was 3.25%. Calculate the following figures for Fairfax County Virginia between 2005 and 2015. Give all answers to two decimals.

i have a few of the parts but some i cant figure out, i need the three bolded ones please.

a. Nominal GDP growth=12.8

b. Economic growth was ?%

c. inflation=1%

d. Real GDP growth=11.8%
e. Per capita GDP growth= ?%

f. Real per capita GDP growth: ?%

Answer 1

Explanation:-

(b) Economic growth rate;

GDP of 2015( in constant doller of 2005) = 1100000/(1+1%)

GDP of 2015( in constant growth of 2005) = $10891089.108

so,

Economic growth rate =(10891089.108-9750000)/9750000

Economic growth rate = 11.70%

(e) per capita GDP growth;

per capita GDP growth rate = (1100000/1.01-9750000)/9750000

per capit GDp growth rate = 9.5%

(f) Real per capita GDP growth;

GDP of 2015 (in constant doller of 2005) = 11000000/(1+1%)

GDP of 2015 ( in constant doller of 2005) = $10891089-108

So,

Real per capita GDP growth rate = (10891089.108/1.032-9750000)/9750000

Real capita growth rate = 8.2%

Please find attached the image which contains solution for the parts (b) (e)and (f),

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