GDP Worksheet Solutions PDF

Title	GDP Worksheet Solutions
Author	Emily Welch Ruth Welch Ruth
Course	Macro Economics
Institution	Niagara County Community College
Pages	1
File Size	75.6 KB
File Type	PDF
Total Downloads	55
Total Views	143

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Description

GDP 2014 (base yr) P Q Good A Good B

2015 P

2016 Q

P

Q

$5

600

$15

350

$20

300

$10

400

$20

450

$30

400

Use the above data to answer the following questions. Note: 2014 is the base year. Calculate Nominal GDP for 2015. $15X350+ $20X450=$14,250

Calculate Nominal GDP for 2016 $20X300+$30X400=$18,000

Calculate Real GDP for 2015. $5X350+$10X450=$6250

Calculate Real GDP for 2016. $5X300+$10X400-$5,500

If the country’s population stayed the same from 2015-2016, did the country’s standard of living increase or fall from 2015 to 2016? Explain? Since Real GDP per person decrease from 2015-2016 average incomes in 2016 would be lower than 2015 and thus standard of living would have fallen....