Data regarding U.S. GDP
a) The nominal GDP growth rate from 1996 to 2016 was
131.72%, calculated using the following:[
= (2016 nominal GDP - 2009 nominal GDP) / 2009 nominal GDP x 100
= (18,707 - 8,073)/ 8,073 x 100
=
131.72%
b) The GDP deflator growth rate from 1996 to 2016 was 44.75%, derived as follows:
= (2016 GDP deflator - 1996 GDP deflator)/ 1996 GDP deflator x 100
= (105.93 - 73.18)/73.18 x 100
=44.75%
Clarification:
1. Data regarding U.S. GDP
Year Nominal GDP GDP Deflator (Billions of dollars) (Base year 2009)
2016 18,707 105.93
1996 8,073 73.18
2. As stated on wikipedia.com, "the GDP deflator (implicit price deflator) is a metric for the price level of all new, domestically produced, final goods and services within an economy for a given year."
3. Nominal GDP serves as a method of measuring a nation's economic productivity. It considers the current prices of goods and services, calculating the monetary value of products and services produced in an economy during a specific period.
4. The growth rate indicates the percentage change for a specific variable over a defined time frame. It is figured as the difference between the current year's variable and the base year’s variable, divided by the base year's variable, multiplied by 100.
