Scribd
Upload
0 views2 pages

ECO 403 Ass no. 1

The document presents an assignment calculating Nominal GDP, Real GDP, GDP Deflator, and Inflation Rate for the years 2022 to 2024 based on the quantities and prices of oranges and coconuts. Nominal GDP values are 30,000 for 2022, 26,500 for 2023, and 254,000 for 2024, while Real GDP values are 30,000, 27,500, and 130,000 respectively. The GDP Deflator for 2023 is 96.36 and for 2024 is 195.38, indicating a deflation in 2023 and significant inflation in 2024.

Uploaded by

Abdullah M Ahmed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
0 views2 pages

ECO 403 Ass no. 1

The document presents an assignment calculating Nominal GDP, Real GDP, GDP Deflator, and Inflation Rate for the years 2022 to 2024 based on the quantities and prices of oranges and coconuts. Nominal GDP values are 30,000 for 2022, 26,500 for 2023, and 254,000 for 2024, while Real GDP values are 30,000, 27,500, and 130,000 respectively. The GDP Deflator for 2023 is 96.36 and for 2024 is 195.38, indicating a deflation in 2023 and significant inflation in 2024.

Uploaded by

Abdullah M Ahmed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

ECO-403

Assigment No. 1

Roll No. BC220407554


Name: Muhammad Abdullah

Given Data:

Year Oranges (Qty) Coconuts (Qty) Oranges (Price) Coconuts (Price)

2022 50 500 100 50

2023 150 250 110 40

2024 1000 600 200 90

1) Nominal GDP Calculation

Formula:
Nominal GDP = (Quantity of Oranges × Price of Oranges) + (Quantity of Coconuts × Price of
Coconuts)

 2022: (50 × 100) + (500 × 50) = 5,000 + 25,000 = 30,000


 2023: (150 × 110) + (250 × 40) = 16,500 + 10,000 = 26,500
 2024: (1000 × 200) + (600 × 90) = 200,000 + 54,000 = 254,000

Nominal GDP Results:

 2022: 30,000
 2023: 26,500
 2024: 254,000

2) Real GDP (Base Year = 2022 Prices)

Formula:
Real GDP = (Quantity of Oranges × Price of Oranges in 2022) + (Quantity of Coconuts × Price
of Coconuts in 2022)
 2022: (50 × 100) + (500 × 50) = 5,000 + 25,000 = 30,000
 2023: (150 × 100) + (250 × 50) = 15,000 + 12,500 = 27,500
 2024: (1000 × 100) + (600 × 50) = 100,000 + 30,000 = 130,000

Real GDP Results:

 2022: 30,000
 2023: 27,500
 2024: 130,000

3) GDP Deflator

Formula:
GDP Deflator = (Nominal GDP / Real GDP) × 100

 2023: (26,500 / 27,500) × 100 = 96.36


 2024: (254,000 / 130,000) × 100 = 195.38

GDP Deflator Results:

 2023: 96.36
 2024: 195.38

4) Inflation Rate

Formula:
Inflation Rate = ((Current Year GDP Deflator – Previous Year GDP Deflator) / Previous Year
GDP Deflator) × 100

 2023: ((96.36 – 100) / 100) × 100 = –3.64% (Deflation)


 2024: ((195.38 – 96.36) / 96.36) × 100 = 102.37% (Inflation)

Inflation Rate Results:

 2023: –3.64%
 2024: 102.37%

You might also like