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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