Table 5-3
Consider the following table for the country of Ophir:
$$\begin{array} { c c c }
\text { Year } & \text { Naminal GDP } & \text { GDP Deflatar } \
2011 & \$ 4000 & 100 \
2012 & \$ 4100 & 105 \
2013 & 4200 & 110
\end{array}$$
-Refer to the Table 5-3.What can we conclude about real GDP from this information?

Question

Table 5-3
Consider the following table for the country of Ophir:
 $$\begin{array} { c c c } 
\text { Year } & \text { Naminal GDP } & \text { GDP Deflatar } \
2011 & \$ 4000 & 100 \
2012 & \$ 4100 & 105 \
2013 & 4200 & 110
\end{array}$$
-Refer to the Table 5-3.What can we conclude about real GDP from this information?

Quizplus · Accepted Answer

To find real GDP, divide nominal GDP by the GDP deflator (and multiply by 100). Calculating for each year: 2011: 4000/100 = 40, 2012: 4100/105 ≈ 39.05, 2013: 4200/110 ≈ 38.18. Real GDP decreases each year.

Table 5-3 Consider the Following Table for the Country of Ophir

Table 5-3
Consider the Following Table for the Country of Ophir