Calculate real gdp per capita


Assignment:

REAL GDP & ECONOMIC GROWTH

 

Market Basket Good

 

2004 Price

 

2004 Quantity

 

2005 Price

 

2005 Quantity

 

2006 Price

 

2006 Quantity

Oil Change

$18

4

$20

4

$24

4

Tires

$50

2

$45

1

$45

2

Wiper Blades

$4

2

$4

1

$3

1

Engine Oil

$2

30

$5

27

$20

25

1)Calculate the growth in real GDP

a)between 2004 and 2005

b)between 2005 and 2006

c)between 2004 and 2006

Here is some data on the economy:

 

2007

2008

2009

2010

Real GDP

$1,300,000

$1,328,000

$1,429,000

$1,411,000

Population

12,227

12,838

13,480

14,154

2)Calculate real GDP per capita

3)Calculate the growth rates for each year for real GDP and population.

4)Estimate the growth rates for each year for GDP per capita real using the growth rates from 4). Check your estimate by calculating the actual per capita growth rate.

5)Using the growth rates from 2008 to 2009, how long will it take

a)For real GDP to double?

b)For population to double?

c)For real GDP per capita to double?

6)Graph the effect of the population growth on the economy's real GDP. Be sure to use both the labor market graph and the production function graph.

7)Labor productivity decreases. Graph the effect of the change in productivity on the economy's real GDP. Be sure to use both the labor market graph and the production function graph.

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Microeconomics: Calculate real gdp per capita
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