Econ141 Gdp Series Graph Assignment
Autor: megsgavigan • May 21, 2018 • Coursework • 1,289 Words (6 Pages) • 476 Views
- Graph the two GDP series you have downloaded - make sure to label both. Place GDP on the vertical axis and time on the horizontal axis.
[pic 1]
[pic 2]
- How much did NGDP grow between 2004 and 2013? How much did real RGDP grow between 2004 and 2013?
Real GDP in New Zealand has increased by 35,979 between 2004 and 2013 which is a growth of 21.11%, growing from 170,462 to 206,441.
Nominal GDP in New Zealand increased by 72,970 between 2004 and 2013 which is a growth of 50.50%, growing from 144,502 to 217,472.
- If one grew more than the other what does this mean? Explain in 50 words or less.
Due to inflation over time, nominal GDP rises faster than real GDP as nominal GDP is based on a base set of prices. The difference between the increase in nominal GDP and Real GDP represents GDP deflator (inflation), these inflationary effects alter New Zealand’s Real GDP depending upon changes in price level.
- Using the resident population data, calculate RGDP per capita. Given this, answer three questions: In percentage terms, how much did RDGP per capita grow per annum on average between 2004 and 2008? What about 2009 to 2013?
Year | RDGP | Population | RGDP per capita | ||
2004 | 170,462 | 4,044,900 | 23.7290 | ||
2005 | 176,035 | 4,101,300 | 23.2982 | ||
2006 | 181,878 | 4,148,000 | 22.8065 | ||
2007 | 186,582 | 4,196,700 | 22.4925 | ||
2008 | 193,592 | 4,235,300 | 21.8775 | ||
2009 | 190,599 | 4,271,000 | 22.4083 | ||
2010 | 194,251 | 4,317,900 | 22.2285 | ||
2011 | 196,120 | 4,362,800 | 22.2456 | ||
2012 | 201,407 | 4,392,500 | 21.8091 | ||
2013 | 206,441 | 4,417,700 | 21.3993 |
2004 and 2008?
(193,592/170,462)^0.2-1 = 2.57% (2dp)
2009 and 2013?
(206,441/190599)^0.2-1 = 1.61% (2dp)
Compound Annual Growth Rate | ||
2004-2008 | 0.02577 | |
2009-2013 | 0.01609 |
- Discuss the differences in RGDP per capita growth in the 2004-2008 and 2009-2013 periods in terms of our concept of booms and busts. Do this in 100 words or less
Over the 5 years between 2004-2008 average Real GDP per capita growth was at an average rate of 2.57% (2dp) this is between the reserve banks goal of inflation of 1-3%, this could be considered a boom. The following years after the economic slow-down showed an average growth rate of Real GDP per capita of 1.61% (2dp), this showed as a contraction on the business cycle.
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