Answer to Question #289580 in Macroeconomics for GIGIG

Question

For country X you have the following data for four years. Year 1: Private Consumption – 95000 billion. Euro / Public Consumption – 35500 billion. Euro / Gross capital formation – 36000 billion Euro / Net Export – (-3500) billion Euro, Year 2: Private Consumption – 99000 billion Euro / Public Consumption – 39000 billion Euro / Gross capital formation – 39500 billion Euro / Net Export – (-4800) billion Euro / GDP Deflator - 103% (compared to year 1), Year 3: Private Consumption – 98000 billion Euro / Public Consumption – 38500 billion Euro / Gross capital formation – 37500 billion Euro / Net Export – (-4200) billion Euro / GDP Deflator - 104 % (compared to year 1), Year 4: Private Consumption – 99800 billion Euro / Public Consumption – 40050 billion Euro / Gross capital formation – 39700 billion Euro / Net Export – (-4700) billion Euro / GDP Deflator - 106 % (compared to year 1). Analyze the real evolution of the GDP over the current-basis period using indices (Use year 1 as basis and Year 2 as current)!

Answer 1

solve in EXCEL

GDP is increasing, which means that the economy is progressively developing, and the well-being of citizens is increasing.