1. What are some of the problems in using fixed weights to compute real GDP and the GDP price index? How does the BEA's approach attempt to solve these problems?
2. Explain what double counting is and discuss why GDP is not equal to total sales.
3. The following table gives some figures from a forecast of real GDP (in 2005 dollars) and population done in mid-2010. According to the forecast, approximately how much real growth will there be between 2010 and 2011? What is per capita real GDP projected to be in 2010 and in 2011? Compute the forecast rate of change in real GDP and per capita real GDP between 2010 and 2011.
