ECO 285 – Macroeconomics
Dr. D. Foster
GDP Calculations
1. Given the following information for various components of GDP, calculate the
nominal values of Consumption, Investment, Government, Net Exports, National
Income, Net National Product (NNP), GNP and GDP for 2015 and 2016.
Automobiles
Change in business inventories
Depreciation
Durable goods
Equipment and computer software
Exports
Food
Gasoline
GDP to GNP adjustment
Imports
Indirect business taxes
Interest
National defense spending
NNP to NI adjustment
Non-durable goods
Non-residential investment
Other federal government spending
Profits
Rents
Residential construction
Services
State and local government spending
Wages
2015
$515
-$23
$2,580
$1,442
$1,542
$2,244
$952
$558
-$366
$2,984
$1,247
$621
$956
-$190
$2,901
$1,950
$448
$2,014
$1,773
$285
$9,287
$2,207
$9,922
2016
$533
-$28
$2,662
$1,471
$1,542
$2,318
$990
$575
-$366
$3,050
$1,403
$695
$980
-$122
$3,046
$2,009
$455
$2,370
$2,004
$286
$9,844
$2,229
$9,939
2. Consider a very limited economy with only six goods being produced. We record the
amount produced and sold in each of four consecutive years, which is shown in the
table below:
Using this information, calculate the nominal GDP in each year, the annual growth in
nominal GDP from year to year (i.e., from year 1 to 2, from year 2 to 3, etc.) and the
aggregate amount of growth from year 1 to each of the other three years.
Now, convert these values into real GDP terms, using the prices of Year 1 for all the
subsequent years. Repeat the exercise above and calculate the annual growth in real
GDP and the aggregate growth in real GDP from Year 1.