Gadget GDP in Hogwarts) THE TABLE IS INCLUDED BELOW--indicating 2010 and 2011.

Table: Gadget GDP in Hogwarts

 

2010 Gadget Production 4000

2010 Gadget Prices (*base year) $500

2010 Population of Hogwarts 10000

 

2011 Gadget Production 4400

2011 Gadget Prices $600

2011 Population of Hogwarts 12000

 

Calculate the following:

A) Real GDP per capita for 2011

B) Percentage change in real GDP between the two years (2010 and 2011)

C) Percentage change in real GDP per capita between the two years (2010 and 2011)

D. Nominal GDP of 2011

E GDP Deflator of 2011

 

A) Real GDP per capita for 2011

= ( Price of base year * Quantity of 2011 ) / Population of 2011

= ( $500 * 4400 ) / 12000

= $2200000 / 12000

= $183.33

B) Percentage change in real GDP between the two years (2010 and 2011)

Real GDP in 2010

2010 is base year. So real GDP and nominal GDP will be same

= Price of base year * Quantity of 2010

= $500 * 4000

= $2000000

Real GDP in 2011

= Price of base year * Quantity of 2011

= $500 * 4400

= $2200000

% change in real GDP

= ( Real GDP of 2011 - Real GDP of 2010 ) * 100 / Real GDP of 2010

= ( $2200000 - $2000000 ) * 100 / $2000000

= 10%

C) Percentage change in real GDP per capita between the two years (2010 and 2011)

Real GDP per capita in 2010

= ( Price of base year * Quantity of 2010 ) / Population of 2010

= ( $500 * 4000 ) / 10000

= $2000000 / 10000

= $200

% change in real GDP per capita

= ( Per capita real GDP of 2011 - Per capita real GDP of 2010 ) * 100 / Per capita real GDP of 2010

= ( $183.33 - $200 ) * 100 / $200

= -8.33%

D. Nominal GDP of 2011

= Price in 2011 * Quantity of 2011

= $600 * 4400

= $2640000 is nominal GDP

E GDP Deflator of 2011

= Nominal GDP in 2011 * 100 / Real GDP in 2011

= $2640000 * 100 / $220000

= 120 is GDP deflator for 2011