Question 1: Suppose that Saudi Arabia produces the goods: Books, Pizza and Bags. The following table provides information about the prices and output for these three goods for the years 2012, 2013 and 2014.
|
Year
|
Price per Book
|
Quantity of Books
|
Price per Pizza
|
Quantity of Pizza
|
Price of Bag
|
Quantity of Bags
|
|
2012
|
$100
|
10
|
$50
|
100
|
$10
|
200
|
|
2013
|
$100
|
12
|
$52
|
108
|
$10
|
205
|
|
2014
|
$110
|
12
|
$54
|
115
|
$10
|
212
|
(A). Using above information, calculate nominal GDP for 2012, 2013 &2014.
(B) Calculate real GDP of 2012, 2013 &2014 using 2012 as a base year.
(C). Measure GDP deflator on a 100-point scale with 2012 as the base year
Question 2: The U.S. real GDP per person grew rapidly in the early 1960s. The table above has U.S. real GDP and population for 1961 and 1962.
1. What was U.S. real GDP per person in 1961?
2. What was U.S. real GDP per person in 1962?
3. Between 1961 and 1962, how rapidly did U.S. real GDP per person grow?