1. What are the two accounts of an economic system (be sure to identify which account is the source and which is the use of funds)? List all the components on both sides as they appear in the text.
Table 1: US Nominal GDP broken down by Component (Dept. Of Commerce Data)
|
Year
|
C
|
I
|
G
|
(X-M)
|
Nominal GDP
|
|
t-2
|
$100
|
$55
|
$50
|
$5
|
|
|
t-1
|
$175
|
$65
|
$60
|
$10
|
|
|
t0
|
$250
|
$75
|
$70
|
$5
|
|
|
t+1
|
$500
|
$85
|
$80
|
$0
|
|
|
t+2
|
$700
|
$95
|
$90
|
($5)
|
|
2. Compute the total (nominal) GDP for the selected years in Table 1 above.
3. (i) Draw the different components of GDP for the selected years in a graph.
(ii) Draw the aggregate GDP for the selected years in a graph
4. What is equation for an index number in general? For a Price index? For a quantity index?
5. Using the data below calculate the growth rate for any four regions across both sets of dates: period 1 from 1982 t0 1950 and period 2 from 1950 to 2009. Also calculate the average growth rate of the period.
Use the formula:
gy = 1/T[ln(YT)- ln(Y0)]
|
|
Growth Rates
1820-1950 1950-2009
|
Income Levels (in 1990 ire! $)
1820 1950 2007
|
|
The %odd
|
0.9
|
2.1
|
$675
|
$2,108
|
$7,300
|
|
W. Europe
|
1.1
|
2.6
|
1,202
|
4,578
|
21,200
|
|
|
|
N. Am erica
|
1.6
|
2.0
|
1,253
|
9,463
|
31,000
|
|
Japan
|
0.8
|
4.8
|
660
|
1,921
|
22,500
|
|
E. Europe
|
1.1
|
2.2
|
683
|
2,111
|
7,600
|
|
Form er USSR
|
1.8
|
1.5
|
700
|
2,600
|
6,800
|
|
Latin America
|
1.0
|
1.6
|
691
|
2,503
|
6,500
|
|
China
|
-0.2
|
4.4
|
600
|
448
|
6,050
|
|
East Asia
|
0.3
|
3.5
|
500
|
668
|
5,300
|
|
Africa
|
0.6
|
1.1
|
420
|
1,307
|
1,700
|