PP_Slides_Class_11_Monday_February_18

# PP_Slides_Class_11_Monday_February_18 - Good Morning Class...

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Good Morning!! Class 11 Monday, February 18

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%chg %chg %chg nom GDP real GDP GDP deflator (over 14 yr) (over 14 yr) (over 14 yr) 1972 1986 260.50% 52.59% 136.24% 2000 119.96% 51.93% 40.35%
%chg %chg %chg nom GDP real GDP GDP deflator (yr avg) (yr avg) (yr avg) 1972 1986 18.61% 3.76% 9.73% 2000 8.57% 3.71% 2.88%

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GDP, 1930-2005 (bil 2000\$)
what was nominal GDP in 2000? what was the GDP deflator in 2000? was 2005 nominal GDP > or < 11,131? was the 2005 GDP deflator > or < 100? was 1995 nominal GDP > or < 8,032? was the 1995 GDP deflator > or < 100?

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in the base year, nom GDP = real GDP for years before the base year real GDP uses a higher price level nom GDP < real GDP for years past the base year real GDP uses a lower price level nom GDP > real GDP
if the base year is 2000 GDP deflator 2001 > 100 2000 = 100 1999 < 100

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nominal GDP *100 real GDP GDP deflator nominal GDP *100 real GDP 50 nominal GDP *100 real GDP 100 nominal GDP *100 real GDP 200 = = = =
Nominal GDP and Real GDP(2000\$)

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bil of \$ ln( ) diff in ln’s 12000 9.39 .18 10000 9.21 .22 8000 8.99 .29 6000 8.70 .41 4000 8.29 .69 2000 7.60
1. In 1970, nominal GDP is \$1,029 bil and real GDP (2000\$) is \$3,772 bil. The GDP deflator is a. < 100 b. = 100 c. > 100

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2. In 1970, nominal GDP is \$1,029 bil and real GDP (2000\$) is \$3,772 bil. The GDP deflator is a. .2728 b. 27.28 c. 27.28% d. 36.66 e. 3.666
3. In 2000 nominal GDP is \$9,817 and real GDP (2000\$) is \$9,817. The GDP deflator is a. < 100 b. = 100 c. > 100

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4. In 2005 nominal GDP was \$12,486 and real GDP (2000\$) was \$11,135. The GDP deflator was a. < 100 b. = 100 c. > 100
5. In 2005 nominal GDP was \$12,486 and real GDP (2000\$) was \$11,135. The GDP deflator was a. 112.13 b. 89.18 c. .8918 d. 1.1213

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2 approaches to calculating GDP expenditures approach flow-of-income approach
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## This note was uploaded on 03/31/2008 for the course ECON 202 taught by Professor Amsler during the Spring '08 term at Michigan State University.

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PP_Slides_Class_11_Monday_February_18 - Good Morning Class...

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