Calculate nominal GDP in 2013 and 2014. Calculate real GDP in 2013 and 2014 expressed in base-year prices.  GDP Expands 11.4 Percent, Fastest in 13 Years  China’s gross domestic product grew 11.4...


Calculate nominal GDP in 2013 and 2014.


Calculate real GDP in 2013 and 2014 expressed


in base-year prices.


 GDP Expands 11.4 Percent, Fastest in 13 Years


 China’s gross domestic product grew 11.4 percent


last year and marked a fifth year of double-digit


growth. The increase was especially remarkable given that the United States is experiencing a slowdown due to the sub-prime crisis and


housing slump. Citigroup estimates that each 1


percent drop in the U.S. economy will shave 1.3


percent off China’s growth, because Americans


are heavy users of Chinese products. In spite of


the uncertainties, China is expected to post its


sixth year of double-digit growth next year.


 Source: The China Daily , January 24, 2008


 Use the expenditure approach for calculating


China’s GDP to explain why “each 1 percent


drop in the U.S. economy will shave 1.3 percent


off China’s growth.”



May 26, 2022
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