November 6, 2017
SCHOOL OF MANAGEMENT
Master of Business Administration
ECON 610 –Homework 1
Q1)
a) Nominal GDP of year 2016 and 2015
Year
GDP (billion)
GDP Implicit Price
Deflator
2016
18,624.475
110.1
2015
18,120.714
108.7
Table 1: GDP and GDP implicit price deflator annually based (fred.stlouisfed.org)
b) Real GDP=Nominal GDP/GDP Implicit Price Deflator Equation 1
Year
Real GDP (Billion)
2016
169.159
2015
166.704
Table 2: Calculated Real GPD annually based (fred.stlouisfed.org)
C) 𝒈𝒓𝒐𝒘𝒕𝒉 𝒓𝒂𝒕𝒆 = 𝑹𝑮𝑫𝑷 𝒊𝒏 𝒚𝒓 𝟐−𝑹𝑮𝑫𝑷 𝒊𝒏 𝒚𝒓 𝟏
𝑹𝑮𝑫𝑷 𝒊𝒏 𝒚𝒆𝒂𝒓 𝟏 ×𝟏𝟎𝟎 Equation 2
Year
Growth rate
2015-2016
1.47%
