Qrb 501 Week 1 Assessment Questions
Week 1 Assesment Questions
Tamara Powell
March 8, 2010
QRB 501
Prof. David Ferguson
Complete the following order of operations questions:
Chapter 7
12. Key Question The following table shows nominal GDP and an appropriate price index for a group of selected years.
Compute real GDP. Indicate in each calculation whether you are inflating or deflating the nominal GDP data
527.4/22.19 = 23.767
911.5/26.29 = 34.67
2295.9/48.22 = 47.61
4742.5/80.22 = 59.12
8790.2/103.22 = 85.16
|Year |Nominal GDP, |Price Index |Real GDP, |
| |Billions |(1996 = 100) |Billions |
|1960 |$ 527.4 |22.19 |$ 2376.75/Infltng |
|1968 |$ 911.5 |26.29 |$ 34.6709/Inftng |
|1978 |$ 2295.9 |48.22 |$ 47.6130/Infltng |
|1988 |$ 4742.5 |80.22 |$ 59.1186/Infltng |
|1998 |$ 8790.2 |103.22 |$ 85.159/Dfltng |
Chapter 8
2. Key Question Suppose an economy’s real GDP is $30,000 in year 1 and $31,200 in year 2.
What is the growth rate of its real GDP? Assume that population is 100 in year 1 and102 in year 2. a. 31,200-30,000 = 1200 1200/30,000 = 0.04 Ans = 4%
What is the growth rate of GDP per capita? b. 30,000/100 = 300 31,200/102 = 305.88 305.88-300 = 5.88 5.88/300 = 0.01 0.0196x100 = 1.96 %
11. Key Question If the CPI was 110 last year and is 121 this year, what is
Tamara Powell
March 8, 2010
QRB 501
Prof. David Ferguson
Complete the following order of operations questions:
Chapter 7
12. Key Question The following table shows nominal GDP and an appropriate price index for a group of selected years.
Compute real GDP. Indicate in each calculation whether you are inflating or deflating the nominal GDP data
527.4/22.19 = 23.767
911.5/26.29 = 34.67
2295.9/48.22 = 47.61
4742.5/80.22 = 59.12
8790.2/103.22 = 85.16
|Year |Nominal GDP, |Price Index |Real GDP, |
| |Billions |(1996 = 100) |Billions |
|1960 |$ 527.4 |22.19 |$ 2376.75/Infltng |
|1968 |$ 911.5 |26.29 |$ 34.6709/Inftng |
|1978 |$ 2295.9 |48.22 |$ 47.6130/Infltng |
|1988 |$ 4742.5 |80.22 |$ 59.1186/Infltng |
|1998 |$ 8790.2 |103.22 |$ 85.159/Dfltng |
Chapter 8
2. Key Question Suppose an economy’s real GDP is $30,000 in year 1 and $31,200 in year 2.
What is the growth rate of its real GDP? Assume that population is 100 in year 1 and102 in year 2. a. 31,200-30,000 = 1200 1200/30,000 = 0.04 Ans = 4%
What is the growth rate of GDP per capita? b. 30,000/100 = 300 31,200/102 = 305.88 305.88-300 = 5.88 5.88/300 = 0.01 0.0196x100 = 1.96 %
11. Key Question If the CPI was 110 last year and is 121 this year, what is