Module 6 Assignment: Problem Set — GDP and Economic Growth

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]

  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?

 

  1. 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.

 

  1. 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?

  1. 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
 

 
  1. Given this data, what is the Nominal GDP in 2014?

 

  1. What is the Nominal GDP in 2015?

 

  1. What is the Nominal GDP in 2016?

 

  1. Using 2014 as the base year, what is the Real GDP in 2014?

 

  1. Using 2014 as the base year, what is the Real GDP in 2015?

 

  1. Using 2014 as the base year, what is the Real GDP in 2016?

 

  1. Using 2014 as the base year, what is the GDP Deflator in 2014?

 

  1. Using 2014 as the base year, what is the GDP Deflator in 2015?

 

  1. Using 2014 as the base year, what is the GDP Deflator in 2016?

 

  1. Using 2014 as the base year, what is the growth rate of the GDP deflator (also know as inflation rate) between 2014 to 2015?

 

  1. 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.