The table 1 provides the data on nominal GDP, GDP deflator and population for an economy...

 

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The table 1 provides the data on nominal GDP, GDP deflator and population for an economy of Blueland. Year 2018 2019 2020 Nominal GDP, bln USD 210 210 225 GDP deflator 119 115 117 Population, min 7.55 7.6 7.63 A. Calculate real GDP. Compare nominal and real GDP in the case. Indicate if real GDP or nominal GDP gives a more accurate view of the economy. (10 points) B. Calculate real GDP per capita. (5 points) C. Compare the real GDP growth rate and real GDP per capita growth rate in 2018-2019 and 2019-2020. Explain why the real GDP per capita growth rate is higher/lower than the real GDP growth rate. (10 points) D. Discuss the problems/limitations of using real GDP to measure countries' standards of living. (5 points) The table 1 provides the data on nominal GDP, GDP deflator and population for an economy of Blueland. Year 2018 2019 2020 Nominal GDP, bln USD 210 210 225 GDP deflator 119 115 117 Population, min 7.55 7.6 7.63 A. Calculate real GDP. Compare nominal and real GDP in the case. Indicate if real GDP or nominal GDP gives a more accurate view of the economy. (10 points) B. Calculate real GDP per capita. (5 points) C. Compare the real GDP growth rate and real GDP per capita growth rate in 2018-2019 and 2019-2020. Explain why the real GDP per capita growth rate is higher/lower than the real GDP growth rate. (10 points) D. Discuss the problems/limitations of using real GDP to measure countries' standards of living. (5 points)

Answer rating: 100% (QA)

AReal GDP calculation using formula Real GDP Nominal GDPGDP deflator 100 For 2018 310 ... View the full answer