Q1 Nominal GDP of 2011=price of bread(2011)× quantity of bread (2011)× Quantity of automobiles(2011)
=8×(200000+20000)×320
=1600000+6400000=8000000
Real GDP 2011=For real GDP we use prices of base year , here 2008 is base year
Real GDP=Price of bread (2008)× quantity of bread (2011)+Price of automobiles (2008)× quantity of automobiles (2011)
5×(200000+15000)×320
Real GDP in 2011= 1000000+4800000
=5800000
Qb GDP deflator
=RealGDPNominalGDP×100
58000008000000×100=137.93
This means that Nominal GDP is 37.93% more than the real GDP
Qc inflation rate in 2011
GDP deflator of base year=100
GDP deflator for year 2011=137.93
inflation rate is percentage change in GDP deflator
=137.93−100=37.93
=10037.93×100=37.93percent
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very nice!
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