You are given the following information on the economy of a hypothetical country. Use the information...

 

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You are given the following information on the economy of a hypothetical country. Use the information to answer the questions a, b, and c. Labor Productivity Year Real GDP Nominal GDP Population 2002 $115290500 $115290500 31,360,079 51.6 2003 $117563500 $121317500 31,644,028 51.7 52.3 2004 31,940,655 $121089400 $129090600 2005 $124750700 $137384500 32,243,753 53,4 2006 $128124000 54.1 $145040500 32,571,174 2007 $130732300 54.1 $152958900 32,889,025 2008 $130489500 $160341800 33,247,118 53.8 2009 $127958600 $152898500 53.9 33,628,895 2010 $131662200 $162460800 54.7 34,004,889 a. Which year is the base year? Why? (2 marks) b. Calculate the following (Use Microsoft Excel for the calculation) i. GDP Deflator ii. Calculate the standard of living 111. Growth rate of the standard of living Growth Rate IV. V. Population Growth Rate vi. Labour productivity growth rate. (10 marks) c. Using one sentence describe each of the results in "b". (3 marks) d. Analyse the results in iii, iv, v, and vi. (5 marks) e. Take a critical look at the 2007 and 2008 growth rates in "b". What do you observe? Provide an economic explanation to what you observe. (5 marks) f. Based on your calculation above, what can you say about the economy. Provide detailed response and include any policy recommendation. (5 marks) You are given the following information on the economy of a hypothetical country. Use the information to answer the questions a, b, and c. Labor Productivity Year Real GDP Nominal GDP Population 2002 $115290500 $115290500 31,360,079 51.6 2003 $117563500 $121317500 31,644,028 51.7 52.3 2004 31,940,655 $121089400 $129090600 2005 $124750700 $137384500 32,243,753 53,4 2006 $128124000 54.1 $145040500 32,571,174 2007 $130732300 54.1 $152958900 32,889,025 2008 $130489500 $160341800 33,247,118 53.8 2009 $127958600 $152898500 53.9 33,628,895 2010 $131662200 $162460800 54.7 34,004,889 a. Which year is the base year? Why? (2 marks) b. Calculate the following (Use Microsoft Excel for the calculation) i. GDP Deflator ii. Calculate the standard of living 111. Growth rate of the standard of living Growth Rate IV. V. Population Growth Rate vi. Labour productivity growth rate. (10 marks) c. Using one sentence describe each of the results in "b". (3 marks) d. Analyse the results in iii, iv, v, and vi. (5 marks) e. Take a critical look at the 2007 and 2008 growth rates in "b". What do you observe? Provide an economic explanation to what you observe. (5 marks) f. Based on your calculation above, what can you say about the economy. Provide detailed response and include any policy recommendation. (5 marks)

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Gross domestic product computation table Solution a A base year is used for comparison in the measur... View the full answer