Question

Year ma Seda Quantity Price Sodo Price 2016 IS S11.00 22 32.00 15 15 $12.00 23 33.00 2012 2013 232.50 1. Refer to Table above. Estimate Nominal GDP for 2017. 2. Refer to Table above. Using 2016 as the base year, estimate real GDP for 2017. 3. Refer to Table above. Estimate the GDP deflator in 2017. 4. Why do economists estimate nominal and real GDP? 5. List three things that are not included in the GDP estimation i. ii. iii. 6. Using the GDP explain, what is economic growth? 7. What do you mean by GDP per capita? Assume that the following is the approximate estimation of GDP and population for three GCC countries. I bn = 1,000 mn Kitardi Arabia Current GDP (USS bl. 135.7 6103 Population (m) 8. Using the table above estimate Kuwait's GDP per person?

Answer 1

4.Nominal GDP is calculated for the current year

It also considers inflation factor

It is not measured from the base price year

But if we talk about the real GDP then it is measured from the base price year as calculated above

Both are important rules which are widely acceptable by economists across the world

Real GDP helps and comparing the data of change in gross domestic product from the base year but nominal GDP helps in compating the consecutive year change in GDP