Question

In 2012, consumers in Saskatchewan spent $40,851 million, total investment was

$18,873 million, changes in inventory were $186 million, government purchase of goods and services was $2,220 million, exports were $39,249 million, and imports were $41,799 million. All figures are in 2007 dollars.

a. Calculate 2012 real GDP (in 2007 dollars).

b. Nominal GDP in 2012 was $77,929. What was the GDP deflator in 2012?

c. In 2011, real GDP was $58,184 million and the GDP deflator was 126.2. What were the real GDP growth rate and inflation rate in 2012?

d. Given a total population of 1.11 million, what was per capita real GDP in Saskatchewan in 2012?

Answer 1

a.

$Real GDP 2012=40851+18873+186+2220+39249-41799$

$=\$59,580 million$

b.

GDP deflator 2012=

$(77929/59580)*100$

$=131$

c.

Growth Rate 2012=

$(59580-58184)/58184*100$

$=2.34$

Inflation rate 2012=

$(131-126.2)/126.2*100$

=3.8%

d.

real GDP per capital 2012=

$59580/1.11$

$=\$53,675.68 million$