# Answer to Question #72671 in Macroeconomics for Sophia

Question #72671

Year Money GDP* Deflator Real GDP**

2013 $ ________ 105 $760 000

2014 $820 000 106 $________

2015 $855 000 ________ $800 000

What is the growth rate of nominal output from 2013 to 2014?

2013 $ ________ 105 $760 000

2014 $820 000 106 $________

2015 $855 000 ________ $800 000

What is the growth rate of nominal output from 2013 to 2014?

Expert's answer

GDP Deflator = Nominal GDP/Real GDP*100

Year Nominal GDP Deflator Real GDP

2013 $7,98,000 105 $7,60,000

2014 $8,20,000 106 $7,73,585

2015 $8,55,000 106.875 $8,00,000

To calculate Nominal GDP growth rate, we apply the formula,

NGDP2014 growth= (NGDP2014 â€“ NGDP2013)/NGDP2013

= [($8,20,00 - $7,98,000)/$7,98,000]*100

NGDP2014 growth= 2.75%

The growth rate of nominal output from 2013 to 2014 IS 2.75%.

Year Nominal GDP Deflator Real GDP

2013 $7,98,000 105 $7,60,000

2014 $8,20,000 106 $7,73,585

2015 $8,55,000 106.875 $8,00,000

To calculate Nominal GDP growth rate, we apply the formula,

NGDP2014 growth= (NGDP2014 â€“ NGDP2013)/NGDP2013

= [($8,20,00 - $7,98,000)/$7,98,000]*100

NGDP2014 growth= 2.75%

The growth rate of nominal output from 2013 to 2014 IS 2.75%.

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