Visit the Bureau of Economic Analysis Web site at wwwbeagov

Visit the Bureau of Economic Analysis Web site at www.bea.gov In U.S. Economic Accounts under National click on Gross Domestic Product (GDP), then Interactive Tables: GDP and the National Income and Product Account (NIPA) Historical Tables, click \"Begin using the data\", and use Section 1 - Tables 1.1.5 and 1.1.6 to identify the GDP (nominal GDP) and real GDP for the past four quarters. Notice table 1.1.6 is chained to 2009 dollars (billions), meaning that 2009 is the base year. The data you will be working with is the first row of data from each table. A. Suppose we want to use 2010 as the base yea instead of 2009. Using 2010 as a base, how much is real GDP in 2012 (use two decimals)? Suppose we want to use 2010 as the base year instead of 2009. Using 2010 as a base, how much is real GDP in 2005 (use two decimals)? B.

Solution

1. We need to find Nominal and Real GDP values

2. Divide nominal by real gdp to get CPI

3. Mulitply nominal GDP of 2012 by CPI of 2010 and multiply by 100

A.

Year

Nominal GDP

Real GDP

CPI

2010

14964.4

14783.8

101.22

2012

16155.3

15354.6

105.21

Real GDP of 2012 dollars with 2010 as base

15960.58

B.

Year

Nominal GDP

Real GDP

CPI

2010

14964.4

14783.8

101.22

2005

13093.7

14234.2

91.99

Real GDP of 2005 dollars with 2010 as base

12935.88

Year	Nominal GDP	Real GDP	CPI
2010	14964.4	14783.8	101.22
2012	16155.3	15354.6	105.21
Real GDP of 2012 dollars with 2010 as base	15960.58