Answer
a) 3.95% growth
b) 2.27% growth
c) 11,542.30 billion dollars
d) 13,584.06 billion dollars
e) 1.64% growth
f) The growth rate was higher due to inflation.
Work Step by Step
a)
$growth = 100*[(X_{final}/X_{initial})^{(1/N)}-1]$
$growth = 100*[(15676/10642)^{(1/10)}-1]$
$growth = 100*[1.47303139)^{.1}-1]$
$growth = 100*[1.03949212-1]$
$growth = 100*[0.03949212]$
$growth = 3.949212$
b)
$growth = 100*[(X_{final}/X_{initial})^{(1/N)}-1]$
$growth = 100*[(115.4/92.2)^{(1/10)}-1]$
$growth = 100*[(1.2516269)^{.1}-1]$
$growth = 100*[(1.022698)-1]$
$growth = 100*(0.022698)$
$growth = 2.269$
c)
$GDP_{2005 prices}$ = 2002 nominal GDP/(2002 GDP deflator/100)
$GDP_{2005} = 10624/(92.2/100)$
$GDP_{2005} = 11542.30$
d)
$GDP_{2005 prices}$ = 2012 nominal GDP/(2012 GDP deflator/100)
$GDP_{2005 prices} = 15676/(115.4/100)$
$GDP_{2005 prices} = 13584.06$
e)
$growth = 100*[(X_{final}/X_{initial})^{(1/N)}-1]$
$growth = 100*[13584.06/11542.30)^{(1/10)}-1]$
$growth = 100*[1.17689)^{.1}-1]$
$growth = 100*[1.01642-1]$
$growth = 100*[.01642]$
$growth = 1.642$
f)
