Question

16. GDP Growth Consider the following data on U.S. GDP: Year GDP (Billions of current dollars) (Billions of 2009 dollars) 2011 15,517.9 15,020.6 2012 16,155.3 15,354.6 2013 16,663.2 15,583.3 2014 17,348.1 15,961.7 2015 17,942.9 16,345.0 Source: "National Economic Accounts."U.S. Bureau of Economic Analysis. The percentage change in nominal GDP from 2013 to 2014 was . The percentage change in real GDP from 2012 to 2013 was . True or False: The percentage change in real GDP from 2012 to 2013 was higher than the percentage change in real GDP from 2011 to 2012. False True

Answer 1

The percentage change in nominal GDP from 2013 to 2014 was 4.29%

The percentage change in real GDP from 2012 to 2013 was 1.48%

The percentage change in real GDP from 2012 to 2013 was higher than the percentage change in real GDP from 2011 to 2012. FALSE

Step-by-step explanation:

In order to calculate this we just have to calculate the percentages with a rule of thirds:

`(GDP1)/(100)= (GDP2)/(x)`

To calculate the first one we use the nominal GDP which is the GDP with the current market value:

`(GDP1)/(100)= (GDP2)/(x)\\(16,663.2)/(100)= (17,348.1 )/(x)\\x=((100)(17,348.1)/(16,663.2) \\x=4.29%`

To calculate the change in real GDP we use the values adapted to a pre-agreed monetary value, in this case the dollar at 2009:

`(GDP1)/(100)= (GDP2)/(x)\\(15,354.6)/(100)= (15,583.3)/(x)\\x=((100)(15,583.3)/(15,354.6) \\x=1.48%`

To calculate the 2011 to 2012 we insert the values:

`(GDP1)/(100)= (GDP2)/(x)\\( 15,020.6)/(100)= (15,354.6)/(x)\\x=((100)(15,354.6)/( 15,020.6) \\x=2.22%`

So with this we know that it is wasn´t higher the percentage change from 2012-2013, than that of 2011-2012