FREE GDP Calculation Questions and Answers
In Country Y, the quantity of smartphones produced in Year 1 was 20,000, and the price per smartphone was $500. In Year 2, the number of smartphones produced increased to 25,000, and the price per smartphone decreased to $450. What was the nominal GDP growth rate between Year 1 and Year 2?
Explanation:
Nominal GDP in Year 1 = Quantity * Price = 20,000 * $500 = $10,000,000
Nominal GDP in Year 2 = Quantity * Price = 25,000 * $450 = $11,250,000
Nominal GDP Growth Rate = [(Nominal GDP in Year 2 - Nominal GDP in Year 1) / Nominal GDP in Year 1] * 100%
= [(11,250,000 - 10,000,000) / 10,000,000] * 100%
= (1,250,000 / 10,000,000) * 100%
= 12.5%
What is the GDP Deflator for Year 2?
Explanation:
Nominal GDP = (Quantity of Apples * Price of Apples) + (Quantity of Oranges * Price of Oranges)
= (4,000 * $0.30) + (3,000 * $0.50)
= $1,200 + $1,500
= $2,700
Real GDP (from the previous question) = $2,700
GDP Deflator = (Nominal GDP / Real GDP) * 100
= ($2,700 / $2,000) * 100
= 135
In Country A, the nominal GDP in Year 1 was $500 billion, and the GDP deflator was 110. In Year 2, the nominal GDP increased to $550 billion, and the GDP deflator rose to 120. What was the real GDP growth rate between Year 1 and Year 2?
Explanation:
To calculate the real GDP growth rate, we need to adjust for inflation by using the GDP deflator.
Real GDP in Year 1 = Nominal GDP in Year 1 / GDP Deflator in Year 1 = $500 billion / 110 = $4.545 billion
Real GDP in Year 2 = Nominal GDP in Year 2 / GDP Deflator in Year 2 = $550 billion / 120 = $4.583 billion
Real GDP Growth Rate = [(Real GDP in Year 2 - Real GDP in Year 1) / Real GDP in Year 1] * 100%
= [(4.583 - 4.545) / 4.545] * 100%
= (0.038 / 4.545) * 100%
≈ 0.84%
Therefore, the closest answer is 8%.
What is the real GDP per capita in Year 4?
Explanation: (4,400 ÷ 12) x 100 = 367
What is the real GDP in Year 4?
Explanation: (6,600 ÷ 150) x 100 = 4,400
In year one, nominal GDP is $5,000, while real GDP is $4,500. In year two, nominal GDP is $5,500, while real GDP is $4,800. Which of the following statements is TRUE?
Explanation:
Nominal GDP increased more than real GDP because the difference between nominal and real GDP was larger in Year 2 compared to Year 1.
If nominal GDP increased by 5.1% and real GDP increased by 2.5% last year, which of the following is TRUE?
Explanation:
Prices went up during the year because nominal GDP, which includes the effect of price changes, increased more than real GDP, which adjusts for inflation.
Calculate the nominal GDP for 2006:
Explanation:
($100 x 1) + ($10 x 8) + ($5 x 4) = $200
What is the real GDP in Year 3?
Explanation: (5,000 ÷ 125) x 100 = 4,000
Using 2006 as the base year, calculate the real GDP for 2007.
Explanation:
($100 x 1) + ($10 x 10) + ($5 x 5) = $225
What is the real GDP per capita in Year 3?
Explanation: (4,000 ÷ 11) x 100 = 364