You can click on the following link to download the problem set for this module: GDP and Economic Growth Problem Set.
GDP and Economic Growth Problem Set^{[1]}
 Suppose that a farmer grows wheat, which she sells to a miller for $10.
The miller turns the wheat into flour, which she sells to a baker for $55.
The baker turns the wheat into bread, which she sells to consumers for $140.
Consumers eat the bread.
What is GDP in this economy?
 Consider the following table showing the breakdown of GDP (in billions) for China.
GDP Category  Amount (in billions) 
Consumption  1700 
Investment  700 
Government Expenditure  100 
Exports  50 
Imports  40 
Using the expenditure approach, calculate GDP for China.
 Consider the following table showing the breakdown of GDP (in billions) for China.
GDP Category  Amount (in billions) 
Wages and Salaries  1000 
Consumption  1700 
Investment  700 
Depreciation  50 
Government Expenditure  100 
Taxes  300 
Exports  50 
Imports  40 
Income receipts from rest of the world  10 
Income payment to rest of the world  50 
What are net exports for China?
 Suppose that GDP in Japan is 1030 and then grows to 1160 (all numbers in billions)
What is the growth rate of GDP in Japan?
Use the following information to answer questions 5 through 15:
The tables below show data on prices and quantities of Oranges and Shoes produced in China.
Data for 2014
Price of Oranges  Quantity of Oranges  Price of Shoes  Quantity of Shoes 
0.7  200  10  270 
Data for 2015
Price of Oranges  Quantity of Oranges  Price of Shoes  Quantity of Shoes 
0.9  150  14  250 
Data for 2016
Price of Oranges  Quantity of Oranges  Price of Shoes  Quantity of Shoes 
1.4  300  15  330 

 Given this data, what is the Nominal GDP in 2014?
 What is the Nominal GDP in 2015?
 What is the Nominal GDP in 2016?
 Using 2014 as the base year, what is the Real GDP in 2014?
 Using 2014 as the base year, what is the Real GDP in 2015?
 Using 2014 as the base year, what is the Real GDP in 2016?
 Using 2014 as the base year, what is the GDP Deflator in 2014?
 Using 2014 as the base year, what is the GDP Deflator in 2015?
 Using 2014 as the base year, what is the GDP Deflator in 2016?
 Using 2014 as the base year, what is the growth rate of the GDP deflator (also know as inflation rate) between 2014 to 2015?
 Using 2014 as the base year, what is the growth rate of the GDP deflator (also know as inflation rate) between 2015 to 2016?
[1] This assignment by Lumen Learning is licensed under a Creative Commons Attribution 4.0 International License. You can access an alternative means to plotting points at https://www.desmos.com/calculator.