Nominal and real GDP
The accompanying table shows data on nominal GDP (in billions of
dollars), real GDP (in billions of 2007 dollars), and population
(in thousands) of Canada in 1966, 1976, 1986, 1996, 2006, and 2016.
The Canadian price level rose consistently over the period
1966–2016.
Year | nominal GDP ( billions of dollars) | real GDPBILLIONS OF 2007 DOLLARS | POPULATION thousands |
1966 | 64.8 | 431.9 | 19998 |
1976 | 200 | 658 | 23414 |
1986 | 524.5 | 897 | 26067 |
1996 | 857 | 1104.3 | 29570 |
2006 | 1492.2 | 1541.7 | 32529 |
2016 | 2027.5 | 1796.2 | 36229 |
a. Why is real GDP greater than nominal GDP for all years until
2006 and lower for 2016?
b. Calculate the percent change in real GDP from 1966 to 1976, 1976
to 1986, 1986 to 1996, 1996 to 2006, and 2006 to 2016. Which period
had the highest growth rate?
c. Calculate real GDP per capita for each of the years in the
table.
d. Calculate the percent change in real GDP per capita from 1966 to
1976, 1976 to 1986, 1986 to 1996, 1996 to 2006, and 2006 to 2016.
Which period had the highest growth rate?
e. How do the percent change in real GDP and the percent change in
real GDP per capita compare? Which is larger? Do we expect them to
have this relationship?
a) The main reason for real GDP to be greater than nominal GDP for all years until 2006 is that the price levels in every year are very less compared to the base price year. In 2016 the price level went up where the from 2006-2016 which made the Nominal GDP greater than Real GDP for that period.
b)
% Change =( (New value/Old value )-1)*100
% Change in real GDP from 1966-1976 =( (Real GDP in( 1976/1966))-1)*100
Year | RGDP | % Change in real GDP |
1966 | 431.9 | - |
1976 | 658 | ((658/431.9)-1)*100 = 52.35% |
1986 | 897 | ((897/658)-1)*100 = 36.32% |
1996 | 1104.3 | ((1104.3/897)-1)*100 = 23.11% |
2006 | 1541.7 | 39.6% |
2016 | 1796.2 | 16.5% |
C & D)
GDP per capita = GDP/ Population
Year | RGDP in thousand of dollars | Population | RGDP per capita = RGDP/ Population | % Change in RGD per capita |
1966 | 431.9*10^{6} | 19998 | (431.9*/19998) = 21597.16$ | - |
1976 | 658* | 23414 | $28102.84 |
((28102.84/21597.16)-1)*100 = 30.12% |
1986 | 897* | 26067 | $34411.32 | 22.45% |
1996 | 1104.3* | 29570 | $37345.28 | 8.52% |
2006 | 1541.7*￼ | 32529 | $47394.62 | 26.9 |
2016 | 1796..2* | 36229 | $49579.1 | 4.6% |
Nominal and real GDP The accompanying table shows data on nominal GDP (in billions of dollars),...
8. accompanying table shows data on nominal GDP in billions of dollars), real GDP (in billions of 2007 doll lars), and population (in thousands) of Canada in 1966, 1976, 1986, 1996, 2006, and 2016. The Canadian price level rose consistently over the period 1966-2016. Nominal GDP (billions of dollars) $64.8 200.0 524.5 857.0 Real GDP (billions of Population 2007 dollars) (thousands) Year 1966 1976 1986 1996 2006 2016 $431.9 19 998 23 414 26 067 29 570 32 529 658.0...
Due Monday, January 21, 2019 1. Nominal and real GDP nying table shows data on nominal GDP (in billions of dollars), real GDP (in bilions of 2007 dollars), and population (in thousands) of Canada in 1966, 1976, 1986, 1996, 2006, and 2016. The Canadian price level rose consistently over the period 1966-2016. Nominal GDP bitlions ofbitions of Population ollans2007 dollar) Chous $64.8 200.0 524.5 8570 $431.9 658.0 19 998 23 414 26 067 29 570 32 520 36 229 1976...
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