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Assignment
Question 1
Suppose that Saudi Arabia produces the goods: Books, Pizza and Bags. The following table provides information about the prices and output for these
Three goods for the years 2012, 2013 and 2014.
Year
Price per Book
Quantity of Books
Price per Pizza
Quantity of Pizza
Price of Bag
Quantity of Bags
2012
$100
10
$50
100
$10
200
2013
12
$52
108
205
2014
$110
$54
115
212
(A). Using above information, calculate nominal GDP for 2012, 2013 &2014.(B) Calculate real GDP of 2012, 2013 &2014 using 2012 as a base year.(C). Measure GDP deflator on a 100-point scale with 2012 as the base year
Question 2
Real GDP (Billions 2005 dollars)
Population (millions of people)
1961
2,432
184
1992
2,578
186
The U.S. real GDP per person grew rapidly in the early 1960s. The table above has U.S. real GDP and population for 1961 and 1962.
a. What was U.S. real GDP per person in 1961?
b. What was U.S. real GDP per person in 1962?
c. Between 1961 and 1962, how rapidly did U.S. real GDP per person grow?
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