Prof. A. R. Gutowsky
Economics 100A


Exercise #1
1. What is the difference between money (nominal) GDP and real GDP?
2. Given the following information:

                                1929     1930    1931    1932     1933    1934    1935     1936    1937    1938

Real GDP

Nominal GDP          103.8      91.1     76.4     58.6      56.2     65.9     73.1      83.6     91.8     85.9

Price Index               12.67     11.53   10.79    9.36      9.25     10.27   11.18  12.65    13.32   12.83
(1992=100)


(A) Calculate real GDP.
(B) Calculate the rate of growth of real GDP for each year between 1929-1938.
(D) In what year after 1929 did real GDP reattain its 1929 GDP level of production?
(E) Calculate the rate of inflation for each year between 1929-1938.
(F) What does 1992 =100 mean?

Last Updated 09/03/99


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