Short Answer total $(70$ pts$)-4$ Questions

Complete in your bluebook

Nominal and Real GDP $(20$ pts$)$

In $2020$ Country A has a Gross private investment $($I$)$ of $$1,000,$ a Government Spending$($G$)$ of $$4,000,$ a Consumption $($C$)$ of $$6,000,$ Imports of $$2,000,$ and Exports of $$1,000.$

a$.(5$pts$)$ Calculate the Nominal GDP for Country A$.$ Is Country A operating on a trade surplus or deficit?

$$14,000$

b$.(5$pts$)$ In $2023$ Country A$\text{'}$s Nominal GDP is $.$ Use $2023$ as the base year and calculate real GDP for Country $2020$ when the GDP Deflator is $85$ in $2020.$

c$.(5$pts$)$ What is Country A$\text{'}$s real GDP in $2023?$

d$.(5$pts$)$ Use the real GDP calculated in part b$.$ and the real GDP in part c$.$ to calculate the growth rate for Country A from $2020$ to $2023.$ Has the real GDP grown or fallen over this period?