Question

The GDP price index in the United States in 2016 was about 106 ​, and real GDP in 2016 was ​$17.7 trillion​ (2012 dollars). The GDP price index in the United States in 2018 was about 110 ​, and real GDP in 2018 was ​$18.6 trillion​ (2012 dollars). Calculate nominal GDP in 2016 and in 2018 and the percentage increase in nominal GDP between 2016 and 2018 .

Answer 1

Answer:

9.05%

Explanation:

in nominal dollars, the 2016 GDP was $17.7 trillion x 1.06 = $18.762 trillion

in nominal dollars, the 2018 GDP was $18.6 trillion x 1.1 = $20.46 trillion

the percentage increased in nominal GDP between 2016 and 2018 was ($20.46 trillion - $18.762 trillion) / $18.762 trillion = 0.0905 ≈ 9.05%