Question

16. GDP Growth Consider the following data on U.S. GDP: Year GDP (Billions of current dollars) (Billions of 2009 dollars) 2011 15,517.9 15,020.6 2012 16,155.3 15,354.6 2013 16,663.2 15,583.3 2014 17,348.1 15,961.7 2015 17,942.9 16,345.0 Source: "National Economic Accounts."U.S. Bureau of Economic Analysis. The percentage change in nominal GDP from 2013 to 2014 was . The percentage change in real GDP from 2012 to 2013 was . True or False: The percentage change in real GDP from 2012 to 2013 was higher than the percentage change in real GDP from 2011 to 2012. False True

Answer 1

Answer:

The percentage change in nominal GDP from 2013 to 2014 was 4.29%

The percentage change in real GDP from 2012 to 2013 was 1.48%

The percentage change in real GDP from 2012 to 2013 was higher than the percentage change in real GDP from 2011 to 2012. FALSE

Explanation:

In order to calculate this we just have to calculate the percentages with a rule of thirds:

$\frac{GDP1}{100}= \frac{GDP2}{x}$

To calculate the first one we use the nominal GDP which is the GDP with the current market value:

$\frac{GDP1}{100}= \frac{GDP2}{x}\\\frac{16,663.2}{100}= \frac{17,348.1 }{x}\\x=\frac{(100)(17,348.1}{16,663.2} \\x=4.29%$

To calculate the change in real GDP we use the values adapted to a pre-agreed monetary value, in this case the dollar at 2009:

$\frac{GDP1}{100}= \frac{GDP2}{x}\\\frac{15,354.6}{100}= \frac{15,583.3}{x}\\x=\frac{(100)(15,583.3}{15,354.6} \\x=1.48%$

To calculate the 2011 to 2012 we insert the values:

$\frac{GDP1}{100}= \frac{GDP2}{x}\\\frac{ 15,020.6}{100}= \frac{15,354.6}{x}\\x=\frac{(100)(15,354.6}{ 15,020.6} \\x=2.22%$

So with this we know that it is wasn´t higher the percentage change from 2012-2013, than that of 2011-2012